Central Bank of Ireland kept close watch for “channels of potential spillover” from collapse of Silicon Valley Bank

The Central Bank said they were closely watching for “broader spillover risks” in the aftermath of the collapse of Silicon Valley Bank (SVB).

In meetings of the Financial Stability Group, officials said that direct exposure of the Irish financial system was “minimal” following the bank’s failure.

However, a meeting on March 13 was told it could have an impact on the technology sector both globally and within Ireland.

In addition, the group heard that some Irish tech firms could experience liquidity issues and loss of credit, including credit card facilities.

The failure had by that stage caused “broader market turbulence”, with the value of banking stocks internationally and domestically affected.

An update from the Central Bank to the meeting said: “Direct exposures of the Irish financial system to SVB were minimal, but broader spillover risks are being actively monitored.”

On March 16, another meeting of the group was told the banking turmoil, which had now affected Credit Suisse, was being watched “closely”.

The Central Bank were looking at “the channels of potential spillover” to the Irish financial sector, including to credit institutions and funds.