The European Union does not expect bank failures to spread

EU Commission Principal President Valdis Dombrovskis and EU Mandate President and Swedish Finance Minister Elisabeth Svantesson gave assessments to journalists after the meeting of finance ministers of member states of the EU in Brussels.

Noting that they closely follow developments in the US banking sector, Dombrovskis stated that they noted the quick and decisive decisions of US authorities.

“SVB has a very limited presence at the EU level,” Dombrovskis said, emphasizing that they are in contact with the authorities.

Dombrovskis added that they do not expect SVB’s bankruptcy to spread to EU countries.

The EU mandate chair, Swedish Finance Minister Svantesson, also stated that the European Central Bank (ECB) presented its view and stance on bank failures in the US to finance ministers.

After the bankruptcy of SVB and Signature Bank in the US, concerns about the global banking sector increased. SVB, the 16th largest bank in the US, often provided financing to startups and venture capital. (AA)