The South African Reserve Bank does not anticipate any effects from the Silicon Valley Bank or Credit Suisse to impact the South African financial or banking sectors, it said.
"While these events reflect fragilities in the global financial system, the likely spill-overs to South Africa are expected to be minimal," the central bank said in a statement.
“South African banks do not have the same exposure to investment banking products and derivative trading as some global banks,” according to the bank. “We remain vigilant about risks in our domestic financial sector.”
It added that South African regulators are in constant communication with global regulators and have sufficient information to monitor the risks stemming from these jurisdictions.
The US government launched emergency measures on Sunday last week to shore up confidence in the banking system after the failure of Silicon Valley Bank, the largest bank collapse since the 2008 financial crisis.
Within days, the market turmoil had ensnared Swiss lender Credit Suisse, forcing it to borrow up to $54 billion from Switzerland's central bank to shore up liquidity.
REUTERS