PHNOM PENH: Prime Minister Hun Sen has told people in Cambodia not to panic about the collapse of two major banks in the United States. He has asked the public to have confidence in Cambodia’s financial sector.

While speaking at the graduation ceremony for students of Build Bright University on Thursday morning, the Prime Minister urged the public to trust the banking sector in Cambodia and to not panic over the collapse of two major banks in the United States.

"Any panic risks chaos in the financial and banking sectors of Cambodia," he said.

He added that this sort of banking crisis has occurred many times before in the United States, so the latest bank collapses will not make the situation here in Cambodia any worse.

Last week, two major U.S. banks, Silicon Valley Bank and Signature, experienced a financial crisis that threatened the American banking system. Silicon Valley Bank collapsed on Friday, then on Sunday, authorities also forced Signature Bank to close.

In the aftermath of the biggest U.S. bank failure since the 2008 financial crisis, President Joe Biden promised the introduction of new regulations. The U.S. President, however, will need to face a divided Congress, which could make passing tougher new rules more difficult.