The bankruptcies of US banks Silicon Valley Bank (SVB) and Signature Bank do not pose a threat to French financial institutions, says French Finance Minister Bruno Le Maire. The German financial regulator BaFin also issued a similar reassuring message on Monday morning.
“I don’t see any risk of contagion, so we don’t issue any special warnings to local lenders,” said Le Maire. The minister said France’s banks and financial system are “solid” and well able to withstand shocks.
Eurogroup president Paschal Donohoe said the eurozone has “very limited” exposure to the fallout of US banks. He pointed to the very strong regulation in Europe to deal with such issues.
De Nederlandsche Bank (DNB) already indicated on Friday that banks in our country are resilient. The banks can easily absorb a shock resulting from sharply rising interest rates, according to DNB. “I have nothing to add to that,” a DNB spokesperson said on Monday. Problems in the United States at SVB, partly due to high interest rates, already led to concerns about other financial service providers on the stock markets on Friday. On Monday, the stock markets fell sharply again, with significant negatives for financial funds.