Alexandre Albuquerque, vice president and senior analyst, and Ceres Lisboa, associate managing director, both at Moody’s Investors Service: “Latin America’s financial institutions have limited direct exposure to the three U.S. banks that had their operations closed in March 2023, as well as to fintechs and crypto-asset companies, both through deposits or loans. They also maintain adequate administration over the key risk considerations that culminated in deteriorating investor confidence in the U.S. banks. Overall, most banking systems in Latin America show high concentration of market participation amid a few large, diversified banks. In addition, Latin American banks have long been disciplined about asset-liability mismatches. They are used to maintaining high volumes of liquid assets that are mostly comprised of investments in domestic government securities—a large portion are comprised of trading or available-for-sale securities. For securities under held-to-maturity, Latin American banks are less exposed to potential losses from…”