Official press release by Germany’s Federal Financial Supervisory Authority (BaFin) on Silicon Valley Bank Germany Branch 

© Kai Hartmann Photography / BaFin

(IN BRIEF) The German Federal Financial Supervisory Authority (BaFin) has imposed a ban on disposals and payments for Silicon Valley Bank Germany Branch due to concerns that the institution may not be able to meet its obligations towards its creditors. BaFin has also ordered the bank to be closed for business with customers. Silicon Valley Bank Germany Branch is not systemically important and the measures taken will apply until decisions have been made regarding the business activities of Silicon Valley Bank, Santa Clara, which have been transferred to the US Federal Deposit Insurance Corporation (FDIC). The moratorium against Silicon Valley Bank Germany Branch poses no threat to financial stability.

(PRESS RELEASE) BONN, 13-Mar-2023 — /EuropaWire/ — The Federal Financial Supervisory Authority better known by its abbreviation BaFin is the financial regulatory authority for Germany, has issued a ban on disposals and payments for Silicon Valley Bank Germany Branch, as the institution is at risk of being unable to meet its obligations towards its creditors. Additionally, BaFin has ordered the bank to be closed for business with customers. These measures are immediately enforceable but not yet final.

Silicon Valley Bank Germany Branch is not systemically important and is a branch of Silicon Valley Bank, based in Santa Clara, California, USA. The FDIC has published the measures it was taking to protect depositors who invested in Silicon Valley Bank, Santa Clara, and the moratorium against Silicon Valley Bank Germany Branch had to be ordered to secure the assets in an orderly procedure. The measures taken will apply until decisions have been made regarding the business activities of Silicon Valley Bank, Santa Clara, which have been transferred to the FDIC.

According to the institution’s financial statements as of December 31, 2022, the total assets of Silicon Valley Bank Germany Branch amounted to €789.2 million, and its distress poses no threat to financial stability.

Silicon Valley Bank Germany Branch has been domiciled in Germany since May 30, 2018, and conducts lending business in Germany but does not conduct deposit business in Germany. Thus, the moratorium will not affect Germany’s deposit guarantee scheme.

Media contact:

Har­ald Hürter
Press Officer Banking Supervision
Phone: 0228 / 4108 – 3574
E-mail: harald.huerter@bafin.de

SOURCE: BaFin