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Branch: Bafin closes Silicon Valley Bank Germany

Branch: Bafin closes Silicon Valley Bank Germany

The German branch of the Silicon Valley Bank (SVB) is closed. The Bafin ordered the branch to be closed to customers with immediate effect.

The financial regulator Bafin is closing the German branch of the US institute because of the difficulties at the Silicon Valley Bank (SVB). The Federal Financial Supervisory Authority (Bafin) has ordered the Silicon Valley Bank Germany Branch based in Frankfurt/Main to be closed to customers with immediate effect.

Because of “the existing risk for the fulfillment of obligations to creditors”, the Bafin issued a sale and payment ban on the bank. “The plight of the Silicon Valley Bank Germany Branch does not pose a threat to financial stability,” Bafin said.

The US money house Silicon Valley Bank, which specializes in start-up financing, has been temporarily closed and placed under state control after a failed emergency capital increase. This was announced by the US deposit insurance company FDIC on Friday. The SVB, founded in 1983, had seen immense withdrawals of funds in the days before as a result of liquidity concerns.

The bank has also been based in Germany since May 30, 2018 and conducts lending business in this country. According to Bafin, the bank does not collect deposits from customers in Germany, so the moratorium has “no consequences for deposit protection in Germany”. The balance sheet total of the institute based in Frankfurt/Main amounted to 789.2 million euros according to Bafin information according to the 2022 annual financial statements.

Source: Stern

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