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The bankruptcies of Silicon Valley Bank and Signature Bank do not threaten French banks which are “solid”, like “our banking system”, said the Minister of the Economy, Monday on franceinfo.
“I don’t see any risk of contagion, so there is no specific alert”assured Monday March 13 on franceinfo the Minister of the Economy Bruno Le Maire, after the bankruptcy of the American bank Silicon Valley Bank (SVB) and Signature Bank.
>> Why the failure of Silicon Valley Bank revives fears of a banking crisis
Bruno Le Maire wanted to be reassuring. According to him, bankruptcies do not threaten French banks which are “solids”as “our banking system”benefiting from“a cash ratio that is high”. French banking institutions have “Very diversified sectors of activity”he added, unlike the SVB which was almost exclusively linked to the new technologies sector. “What happened in the United States is very singular. This bank was very exposed, even exclusively exposed to the tech sector, which had difficulties linked to the increase in interest rates. tech withdrew their investments and deposits it created this effect on this bank and on another bank”explained the Minister.
On Sunday, US authorities announced that they would allow SVB and Signature Bank customers to withdraw all of their deposits. In addition, the US central bank (Fed) has undertaken to lend the necessary funds so that other banks in need can honor their customers’ withdrawal requests.
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