The collapse of the United States’ Silicon Valley Bank (SVB) could heighten volatility and uncertainties in the financial market, South Korea’s finance ministry.

Ministry vowing to beef up monitoring and swift responses to minimize potential impacts on the economy.

On Friday, U.S. banking regulators shut down the startup-focused lender SVB Financial Group and took control of its customer deposits in the largest failure of a U.S. bank since the 2008 financial crisis, Yonhap reported.

The issue was a key agenda item of the Sunday meeting between South Korea’s Finance Minister Choo Kyung-ho and top economic policymakers, deputy chief of the Bank of Korea, the chair of the Financial Services Commission, chief of the Financial Supervisory Service; and senior presidential secretary for economic affairs.

ministry said after the meeting we cannot rule out the possibility of greater market volatility and uncertainties caused by the bank’s liquidity crisis and the shutdown.

Experts widely expect the case not to spread further and cause damage to the U.S. banking and financial systems, but it could still affect the global and domestic financial market and the real economy at a time when the global market is highly volatile due to aggressive monetary tightening.

Government and the related agencies will closely monitor the situation around-the-clock, and react swiftly, if needed, to prevent the case from affecting our economy, ministry said.

Source: Bahrain News Agency (BNA)