(Reuters) – Ratings agency S&P on Thursday said the fallout from Silicon Valley Bank’s collapse may not lead to any rating actions on Asia-Pacific banks as they are well placed to absorb potential contagion effects.

The direct exposure of APAC banks to SVB is negligible and secondary impacts are manageable, the agency said, adding that some Japanese banks that have large holdings of U.S. government bonds are the most exposed to weakened market sentiment, but not to the extent of initiating rating actions.

“A key rating factor across the region is continuing depositor and stakeholder confidence,” S&P said. “Prudent funding and liquidity management will remain integral to ratings stability.”

The collapse of Silicon Valley Bank has sparked a crisis of confidence in the banking sector, leading to a run on deposits at a host of regional banks despite U.S. authorities launching emergency measures to shore up confidence.