SVB's German branch ordered to halt transactions: BaFin
The German Federal Financial Supervisory Authority (BaFin) on Monday ordered the United States-based Silicon Valley Bank to halt the operations of its Germany branch.
SVB, previously the 16th largest bank in the United States that had been operational for 40 years, collapsed last week.
The 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 toward its creditors," it said in a statement.
The watchdog also ordered the bank to be closed for business with customers.
Unlike its parent company based in California in the US, the Germany branch has been operational since May 2018 and it does not conduct deposit business in Germany.
"Silicon Valley Bank Germany Branch is not systemically important," the BaFin statement said.
Citing the end-2022 financial statements of Silicon Valley Bank Germany Branch, BaFin said that its total assets amounted to 789.2 million euros (844 million US dollars).