By Tetsushi Kajimoto

TOKYO (Reuters) – Japan’s government is closely coordinating with the Bank of Japan and economic authorities overseas to avert fallout from the crisis of self-confidence engulfing banks in the West, Finance Minister Shunichi Suzuki stated on Friday.

Market place turmoil in the wake of the collapse of Silicon Valley Bank (SVB) and Signature Bank in the United States has also ensnared Credit Suisse and fuelled fears of an additional international economic crisis.

Japanese policymakers have so far stuck to the view that the possibility of an additional economic crisis is low.

On Friday, Suzuki stated he was closely watching economic markets in and outdoors of Japan and for any influence from challenges in the banking sector in the West on the Japanese economy.

“With the possibility of different dangers in thoughts…the Economic Solutions Agency will closely coordinate with the Bank of Japan and economic authorities of other nations, though very carefully watching the economy, economic markets and their effects on economic program,” Suzuki told reporters.

Japan has multilateral currency swap arrangements with Southeast Asian economies to prepare for crises like the 1997/98 Asian currency crisis. Nevertheless, a bilateral currency swap arrangement with South Korea expired numerous years ago.

“Absolutely nothing has been decided on economic track challenges such as bilateral currency swap,” Suzuki added.

(Reporting by Tetsushi Kajimoto Editing by Muralikumar Anantharaman and Edwina Gibbs)

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