Australia’s prudential regulator has started asking the country’s banks to declare their exposure to startups and crypto-focused ventures following the collapse of Silicon Valley Bank, according to the Australian Financial Review (AFR). The Australian Prudential Regulation Authority (APRA) had told banks to provide daily updates on their crypto assets as it sought to gain more insight into vulnerabilities, the AFR reported late on Tuesday, citing three unidentified sources.
The APRA declined to comment on the report but referred to its statement last week that it would intensify supervision of the local banking industry and seek more information on any potential impact from Silicon Valley Bank’s collapse. ANZ Group Holdings declined to comment, while Commonwealth Bank of Australia, Westpac Banking Corp and National Australia Bank did not immediately respond to requests seeking comment.
The turmoil that gripped global banks over the past 10 days was triggered by the collapse of midsized U.S. lenders Silicon Valley Bank and Signature Bank, but quickly ensnared Credit Suisse as investors fretted about a financial contagion. Treasurer Jim Chalmers last week said Australia was in a good position to withstand some of the market volatility because the country’s banks were well capitalised, well regulated and had strong liquidity.