The Silicon Valley Bank finances start-ups but is struggling with economic difficulties. This caused a stir in many financial centers. right?
Banking expert Rainhard Schmidt believes that the recent shock waves on the international financial markets following the difficulties faced by the US start-up financier SVB have been exaggerated. The events in California are a “typical example of an inappropriate panic reaction on the part of the stock markets,” said the economics professor from the Goethe University in Frankfurt/Main of the German Press Agency.
“The price drop was inappropriate because Silicon Valley Bank is pursuing a very special business model that really bears no resemblance to almost all banks in most countries,” said the banking expert on Saturday. There is therefore no systemic risk and no reason for further-reaching fears. “The rapid, extensive price recovery was fully justified.”
The US money house Silicon Valley Bank (SVB), which specializes in start-up financing, has been temporarily closed and placed under state control after a failed emergency capital increase. This was announced by the US deposit insurance company FDIC on Friday. The SVB, founded in 1983, had seen huge withdrawals of funds in the past few days as a result of liquidity concerns.
SVB shares were suspended from trading on Friday after a price slide due to the acute emergency. Other banks also came under considerable pressure on the stock exchange. The voluntary resolution of US crypto bank Silvergate Capital had already sent shockwaves through parts of the financial sector on Thursday. Silvergate had already warned in the wake of the bankruptcy of the crypto exchange FTX that it might have to stop trading. However, Silvergate announced that it would repay all customer deposits. (dpa)