The bankruptcies of US banks Silicon Valley Bank (SVB) and Signature do not pose a danger to French financial institutions, Finance Minister Bruno Le Maire said Monday as authorities in the US and UK took extraordinary steps to stop a potential banking crisis.
“I don’t see any risk of contagion, so there’s no special warning” to issue to local lenders, Le Maire told broadcaster FranceInfo.
France’s banks and financial system were “solid” with “a high liquidity ratio” to withstand shocks, added Le Maire.
What’s more, unlike Silicon Valley Bank – which focused on cutting-edge technology firms – French lenders “are not exposed to a single sector” but are “very diversified”, said the minister.
Le Maire’s comments came shortly after UK authorities announced that HSBC bought SVB’s UK arm for a nominal £1 ($1.2) in a rescue deal.
The UK Treasury and the Bank of England “facilitated the sale″ of Silicon Valley Bank UK to HSBC, ensuring the security of £6.7 billion ($8.1 billion) of deposits.
British officials worked throughout the weekend to find a buyer for the UK subsidiary of the California-based bank, whose collapse was the second-largest bank failure in history.
“This morning, the government and the Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC,″ UK finance chief Jeremy Hunt said in a tweet. “Deposits will be protected, with no taxpayer support. I said yesterday that we would look after our tech sector, and we have worked urgently to deliver that promise.”
This morning, the Government and the Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC
Deposits will be protected, with no taxpayer support
I said yesterday that we would look after our tech sector, and we have worked urgently to deliver that promise
— Jeremy Hunt (@Jeremy_Hunt) March 13, 2023
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