• The European Commissioner for financial services, Mairead McGuinness, has commented on the limited impact of Silicon Valley Bank’s (SVB) collapse on the EU.
• Despite her reassuring remarks, stocks of Europe’s largest banks still dropped by 10% on March 15 due to Credit Suisse’s stock hitting an all-time low.
• The Saudi National Bank decided not to bail out the beleaguered bank after a PwC audit revealed „material weaknesses“ in its internal controls.
Silicon Valley Bank’s Collapse
European Commissioner Mairead McGuinness has said that the collapse of Silicon Valley Bank (SVB) has had a „limited impact“ on the European Union (EU). However, authorities must still stay alert to events as they unfold.
Credit Suisse Drags Down Banking Stocks
Despite McGuinness‘ reassuring remarks, stocks of Europe’s largest banks still plunged by as much as 10% on March 15 due to Credit Suisse’s all-time low stock prices. This was caused when Saudi National Bank announced it could no longer provide bailout assistance after a PwC audit revealed „material weaknesses“ in Credit Suisse’s internal controls.
European Commission Monitoring Situation
The European Commission (EC) is monitoring the banking situation in the United States and hopes to learn important lessons from this event. While EU authorities expect minimal impact from SVB’s collapse, McGuinness warned that rising inflation remains a key threat.
Swiss National Bank Offers Assistance
As of writing, Credit Suisse shares have seen marked recovery on Thursday after news of assistance from Swiss National Bank emerged.
In conclusion, although Silicon Valley Bank’s collapse has had limited immediate effects on Europe, authorities should remain aware and vigilant in order to protect against further risks and threats posed by ongoing developments in US banking systems.