Categories: Economy

Ministers: US banking problems do not threaten the Eurozone Related articles

The bankruptcies of US banks Silicon Valley Bank (SVB) and Signature Bank pose no threat to French financial institutions, says French Finance Minister Bruno Le Maire. German financial regulator BaFin also issued a similar reassuring message on Monday morning.

French Finance Minister Bruno Le Maire sees no risk of contagion from the collapse of US banks. (ANP/Abaca Press/Eliot Blondet)

“I don’t see any contagion risk, so we don’t issue any special notices to local lenders,” Le Maire said. The minister said that France’s banks and financial system are “solid” and well able to withstand shocks.

Eurogroup President Paschal Donohoe said the eurozone had “very limited” exposure to the fallout from US banks. He pointed to the very strong regulation in Europe to address such issues.

Resilient

De Nederlandsche Bank (DNB) already indicated on Friday that banks in our country are resilient. Banks can easily absorb a shock from a sharp rise in interest rates, according to DNB. “I have nothing to add,” a DNB spokesman said on Monday. Problems in the US at SVB, partly due to high interest rates, already led to concerns for other financial service providers on the stock markets on Friday. Stock markets fell sharply again on Monday, with significant negative effects for financial funds.

AuthorSt: BNR Web redactie and anp
Source: BNR

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