The Silicon Valley Bank (SVB) collapse forced countries to launch scrutiny on their crypto exchanges and related banks to check for any exposure to the collapsed bank. Australia’s prudential regulator asked local banks to reveal the data of transactions whether they are complying with existing laws or not.
For those who are not aware of the fact that the Silicon Valley Bank (SVB) declared bankruptcy on 10 March by regulatory bodies of the United States. After the collapse crypto-friendly faces strict scrutiny by authorities. It’s reported that many crypto firms worldwide have exposure in the SVB bank. This news further added a headache for regulatory bodies.
On 21 March the Australian Prudential Regulation Authority (APRA) urged local banks to provide data on their transactions. The APRA regulated entities in banking, licensing, insurance, and other related services.
According to reports, the APRA wants to reassure that the banks in Australia have no risky investments in any institution which may face any unforeseen mishaps in the future. The regulator has also been ordered to improve reporting and maintain transparency in their frameworks.
Several countries worldwide are taking proactive steps and restricting their regulatory guidelines on crypto management. The global banking system is currently going through a very turmoil phase. No one is willing to take a minute risk related to vigilance on banks. Barrenjoey analyst Jonathan Mott, famous for its banking sector analyst suggested that currently the Australian banking sector is stable but can be disrupted in the future.
Recently, Switzerland has changed its policy to process a deal with the UBS group. The group has agreed to buy its ailing competitor Credit Suisse. The deal was finalized worth $3.56 billion on 19 March. Swiss authorities changed the policy by bypassing the vote of a shareholder. This is the perfect example of how the countries are not hesitating in opting for preventive policies.
The epicenter of the collapse was in the United States but the shockwaves were felt throughout the world. The banking sector not purely works on how good the particular country’s proactive guidelines have, but it also works on the confidence of stakeholders.