A preliminary analysis of the Financial Superintendence of Colombia on what happened to the Silicon Valley Bank (SVB) indicates that its bankruptcy may be due to poor management in the diversification of its deposits and the devaluation of its investment portfolio. The excess resources were invested mainly in fixed-income securities with long durations.
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According to the entity, despite the fact that said bank was the 16th in the system due to its volume of assets, it is a “category IV” entity and, therefore, it was not obliged to comply with the standards of Basel III in liquidity management.
Something that does not happen in Colombia, where the regulation requires prudential measures for liquidity management in accordance with said standards from all credit institutions in the financial system.
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The most recent figures show that the ratio of deposits and claims against high-quality assets broadly meet the regulatory minimum, reaching 196 percent.
The Superfinancial It also highlights that, by regulation, credit institutions operating in the country do not have capital investments (shares) in companies other than their subsidiaries. Therefore, there are no direct investments of these in SVB. There are no operations in the portfolio with SVB counterparty, nor in fintech companies, private equity funds or related venture capital.
In the Administrators of pension funds (AFP) and other entities, there are no direct investments in SVB, while the exposure of venture capital funds is practically nil in the administrators.
However, the authority expects devaluations in similar businesses in the coming days.
