Finance minister Choo Kyung-ho said on Tuesday that it is too early to predict the repercussions of the sudden bankruptcy of Silicon Valley Bank(SVB) that made it the second-largest bank in U.S. history to fail.

The minister made the remarks during an economy and finance meeting in Seoul, saying that the government will be on high alert and closely watch the situation.

Minister Choo assessed that the collapse of SVB is a case of emerging financial instability in vulnerable sectors as the U.S. Federal Reserve’s aggressive credit tightening continues to respond to high inflation.

The minister assessed that the domestic financial market remains stable, and the bankruptcy seems to have had a limited impact on the local market.

The minister observed that the fundamentals of domestic financial institutions are robust enough to withstand temporary shocks as they have strong liquidity and their asset and debt structures are different from those of SVB.