China's C.bank Warns SVB Failure Shows Impact of Rapid Global Rate Hikes

A security guard stands outside of the entrance of the Silicon Valley Bank headquarters in Santa Clara, California, US, March 13, 2023. REUTERS/Brittany Hosea-Small/File Photo
A security guard stands outside of the entrance of the Silicon Valley Bank headquarters in Santa Clara, California, US, March 13, 2023. REUTERS/Brittany Hosea-Small/File Photo
TT
20

China's C.bank Warns SVB Failure Shows Impact of Rapid Global Rate Hikes

A security guard stands outside of the entrance of the Silicon Valley Bank headquarters in Santa Clara, California, US, March 13, 2023. REUTERS/Brittany Hosea-Small/File Photo
A security guard stands outside of the entrance of the Silicon Valley Bank headquarters in Santa Clara, California, US, March 13, 2023. REUTERS/Brittany Hosea-Small/File Photo

A senior official at the People's Bank of China said on Saturday the collapse of Silicon Valley Bank (SVB) showed how rapid monetary policy shifts were having spillover effects, state-owned newspaper Shanghai Securities News reported.

Xuan Changneng, a deputy governor at the People's Bank of China told the Global Asset Management Forum in Beijing that some financial institutions had grown accustomed to running their balance sheets in an environment of low interest rate volatility and as such lacked sensitivity to short-term and large fluctuations in rates.

Silicon Valley Bank's balance sheet characteristics made it more sensitive to interest rates changes and ultimately led to risk, the newspaper cited him as saying.

"Based on the current situation, there is still uncertainty about whether inflation in the major developed economies will fall significantly in the short term, and continuing to maintain relatively high interest rates may also have an adverse impact on the steady operations of the banking and financial system," he said.

SVB Financial Group on Friday sought protection under Chapter 11 of the US bankruptcy code, days after its former unit Silicon Valley Bank was taken over by US regulators.



Saudi Tourism Ministry Intensifies Inspection Efforts in Summer Tourist Destinations

Saudi Tourism Ministry Intensifies Inspection Efforts in Summer Tourist Destinations
TT
20

Saudi Tourism Ministry Intensifies Inspection Efforts in Summer Tourist Destinations

Saudi Tourism Ministry Intensifies Inspection Efforts in Summer Tourist Destinations

The Saudi Ministry of Tourism has intensified its inspection efforts across several summer tourist destinations in the Kingdom, reported the Saudi Press Agency on Saturday.

These inspections aim to ensure that hospitality facilities hold the necessary licenses from the ministry and comply with approved quality standards, coinciding with the launch of the Saudi Summer season.

The inspection tours covered multiple regions and cities, including Aseer, Al-Baha, Taif, and Jeddah, over the past two months.

The ministry's inspection teams conducted more than 2,800 visits to summer destinations. The visits assessed the quality of services provided, the availability of safety requirements, and cleanliness levels, while also confirming that facilities had obtained the necessary licenses to operate.

The ministry emphasized to all hospitality establishments, including private facilities, the importance of delivering high-quality services and adhering to its approved regulations. It stressed that violators will face penalties, which may include fines of up to SAR1 million, closure of the facility, or both.