Fastest News Updates around the World

German Financial Regulator Shuts Down Silicon Valley Bank Branch in Frankfurt


- Advertisement -

On Monday, Germany’s Federal Financial Services Authority closed the German branch of the bankrupt US bank Silicon Valley.

Baffin said the Frankfurt branch of Silicon Valley Bank Germany will be closed immediately.

Buffin issued a payment ban and a ban on sales at the bank branch due to “the current risk associated with fulfilling obligations to creditors”, while at the same time the authority stated that “the crisis of the Silicon Valley Germani branch does not pose a threat to financial stability” .

It is noteworthy that the US bank “Silicon Valley”, specializing in financing start-ups, was temporarily closed and transferred to state control after the failure of the operation for an emergency capital increase, according to the US Federal Deposit Insurance Corporation “FDIC”. last Friday.

The bank, founded in 1983, had witnessed a huge withdrawal days before the announcement due to liquidity concerns.

A branch of the bank has been operating in Germany since May 30, 2018 and has been conducting lending activities there. According to Baffin, the bank did not collect deposits from customers and for this reason “there are no consequences for deposit insurance in Germany” as a result of the temporary cessation of the bank’s activities.

And according to Baffin, the total assets of the Frankfurt-based bank, according to reports at the end of 2022, amounted to 789.2 million euros.

Source: dpa

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More