SVB's German branch ordered to halt transactions amid crisis, says BaFin

The German Federal Financial Supervisory Authority (BaFin) has ordered the US-based Silicon Valley Bank (SVB) to halt the operations of its Germany branch.

SVB, previously the 16th largest bank in the US that had been operational for 40 years, collapsed last week.

The BaFin "has issued a ban today for Silicon Valley Bank Germany Branch on disposals and payments, as the institution is at risk of being unable to meet its obligations towards its creditors," it said in a statement on Monday.

The watchdog also ordered the bank to be closed for business with customers, Xinhua news agency reported.

Unlike its parent company based in California in the US, the Germany branch has been operational since May 2018 and it does not conduct deposit business in Germany.

"Silicon Valley Bank Germany Branch is not systemically important," the BaFin statement said.

Citing the end-2022 financial statements of Silicon Valley Bank Germany Branch, BaFin said that its total assets amounted to 789.2 million euros ($844 million).

--IANS

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