LatAm has 'resilient' financial system, IDB president says after SVB collapse

Silicon Valley Bank location in San Francisco
The Silicon Valley Bank branch office in downtown San Francisco, California, U.S., March 13, 2023. REUTERS/Kori Suzuki

PANAMA CITY, March 15 (Reuters) - Latin America has a "very resilient and well-managed" financial system, Inter-American Development Bank President Ilan Goldfajn said on Wednesday, following the collapse of Silicon Valley Bank, which has roiled markets.

"We hope that we are prepared for what is coming in the region," Goldfajn added, speaking at an IDB meeting in Panama City.

Stocks and currencies in the region tumbled on Wednesday as traders showed worries over the stability of Swiss lender Credit Suisse (CSGN.S) following the crash of Silicon Valley Bank, raising international fears of financial contagion.

"We're going to learn a lot in coming weeks and months about how to get through this period," Goldfajn said.

He added that IDB leaders would meet to discuss the development bank's macroeconomic outlook and the impact of inflation, as well as risks to the region's financial systems.

Reporting by Milagro Vallecillos; Writing by Kylie Madry; Editing by Sandra Maler

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