Japanese optimism about possible banking crisis

The world’s exchanges and banking systems have been shaken over the past short period, following the collapses of some banks in the United States, amid fears of a new economic pandemic among other countries, including Japan.

The turmoil that followed the collapse of Silicon Valley Bank and Signature Bank in the United States and the ensuing crisis at Credit Suisse resulted in fears of a new global financial crisis, at a critical time for the global economy.

Japanese Finance Minister Shonichi Suzuki announced the government’s coordination with the Bank of Japan and financial authorities abroad to prevent a crisis of confidence in local banks, such as within banks in the West.

he said: “was closely watching financial markets in and outside of Japan and for any impact from problems in the banking sector in the West on the Japanese economy and, Japanese policymakers have so far stuck to the view that the possibility of another financial crisis is low.”

Japan has multilateral currency exchange arrangements with Southeast Asian economies to prepare for crises such as the one in 1997.

Following arrangements between Japan and South Asian economies, a bilateral exchange agreement was signed with South Korea several years ago.