Singapore Banks - UOB Kay Hian 2023-03-17: Keep Calm & Carry On (Amidst The US Bank Runs)

• Maintain OVERWEIGHT on Singapore banks with OCBC as top pick.
• The demise of Silicon Valley Bank (SVB) was caused by the untimely investment in treasury bonds and mortgage-backed securities at peak levels and panic caused by the shutdown of Silvergate Capital. We expect nerves to calm once investors realise that contagion from the three ill-fated banks did not spread to the broader economy.
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3 regional banks in the US succumbed to bank runs last Friday:

Silvergate Capital

• Silvergate Capital (NYSE: SI) was described as the top bank for the crypto market. It helps institutional investors move funds into and out of crypto-trading platforms, such as FTX, Coinbase Global and Kraken. The collapse of FTX shocked the crypto market. Silvergate had to sell its holding of securities at a loss after crypto-related deposits plunged 68% in 4Q22. It laid off 40% of its staff in Jan 23.
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Silicon Valley Bank (SVB)

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Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.