The Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – 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. In addition, BaFin has ordered that the bank be closed for business with customers (“moratorium”). BaFin’s measures are immediately enforceable but not yet final.
Silicon Valley Bank Germany Branch is not systemically important. The institution is a branch of Silicon Valley Bank, based in Santa Clara, California, USA. On 10 March 2023, the US Federal Deposit Insurance Corporation (FDIC) published the measures it was taking to protect depositors who invested in Silicon Valley Bank, Santa Clara. 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.
The distress of Silicon Valley Bank Germany Branch poses no threat to financial stability. According to the institution’s financial statements as at 31 December 2022, the total assets of the institution based in Frankfurt am Main amounted to 789.2 million euros.
Silicon Valley Bank Germany Branch has been domiciled in Germany since 30 May 2018 and conducts lending business in Germany. Silicon Valley Bank Germany Branch does not conduct deposit business in Germany. The moratorium will thus not affect Germany’s deposit guarantee scheme.
