Moody’s sees “limited impact” in Latin America of the banking crisis in the United States

Banks in Latin America will have a “limited impact” due to the financial problems registered in the last few days in the United States, Moody’s Investors Service, a risk rating agency, informed today, Thursday.

In a special report, the agency said that Latin American financial institutions have limited direct exposure to affected banks in the United States, strict regulation, and ample liquidity with stable deposits.

“Most banking systems in the region are concentrated in large, sound, and highly diversified banks,” said Moody’s Managing Director of Corporate Finance Marianna Waltz.

“As a result, segment concentration to a single industry is relatively limited, which helps protect banking systems in Latin America,” she added.

The U.S. authorities decided to guarantee the deposits of Silicon Valley Bank and Signature Bank, two banks that served the technology industry and collapsed due to massive withdrawals, generating turbulence in global financial markets.

Moody’s itself changed its outlook for the U.S. banking system to “negative” from “stable” following the failure of the institutions.

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