German financial regulator BaFin ordered on Monday that the Frankfurt-based German branch of bankrupt Silicon Valley Bank (SVB) be closed for business with customers since it may lack liquidity
MOSCOW (Pakistan Point News / Sputnik - 13th March, 2023) German financial regulator BaFin ordered on Monday that the Frankfurt-based German branch of bankrupt Silicon Valley Bank (SVB) be closed for business with customers since it may lack liquidity.
The watchdog, which is affiliated with the German Finance Ministry, said it had issued a ban on disposals and payments, "as the institution is at risk of being unable to meet its obligations towards its creditors." The lender does not conduct deposit business in Germany.
Californian banking regulators closed SVB on Friday and put it under federal control after a two-day run on the bank rendered it insolvent. The collapse of the start-up focused lender, the second largest bank failure in US history, sent shockwaves across the financial and tech sectors in the US and beyond.
BaFin said SVB's implosion posed no threat to Germany's financial stability because the bank was not "systemically important." It estimated that SVB's German unit held 789.2 million euros ($841.2 million) in assets as of December 2022. The bank had been offering venture capital in the country since 2018.
