Japan to stress-test banks for risk of Silicon Valley Bank-style crisis

Financial watchdog to assess lenders' ability to handle surges in withdrawals

2021002N Silicon Valley Bank

The March failure of Silicon Valley Bank showed how quickly withdrawals can surge to crisis levels. © Reuters

YUKI SEKIGUCHI, Nikkei staff writer

TOKYO -- Japan's financial regulator plans to assess the ability of the country's banks to withstand a social-media-fueled run on deposits, which doomed U.S lender Silicon Valley Bank to collapse earlier this year, Nikkei has learned.

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