Eurozone banks have no exposure to Silicon Valley Bank (SVB) and eurozone banks are in a good position, the head of eurozone finance ministers, Paschal Donohoe, said on Monday, as quoted by Reuters.

“The problems arise because of Silicon Valley Bank’s specific business model. And in Europe, the picture is completely different. Our banks are generally in good shape,” Donohoe told a press conference after talks between euro zone finance ministers.

“We have strengthened them significantly in recent years and they are closely monitored by national and European authorities and the Basel system applies to all EU banks. So there is no direct impact on Silicon Valley Bank,” he said.

The fall of the American bank Silicon Valley Bank caused a strong shock in the stock markets of the United States and Europe, becoming a headline in the entire European press. The Bundesbank has announced a crisis meeting to analyze the impact, while the European Central Bank has not taken such a decision.

US President Joe Biden said on Monday that Washington authorities have taken all necessary measures to ensure the solvency of Silicon Valley Bank’s customer deposits after the collapse of the US bank caused major shocks in the markets, Reuters reports.

Little-known to the general public, SVB specialized in financing startups and became the 16th largest US bank by assets, with assets of $209 billion at the end of 2022 and approximately $175.4 billion in warehouses.

The bank has been unable to cope with massive withdrawals from its customers, mostly technology companies, and its latest attempts to raise new money have failed.

Therefore, the US authorities officially took over the bank and entrusted its management to the US Deposit Insurance Agency (FDIC).

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