Finance watchdog orders moratorium on SVB's Germany branch

By Gokhan Ergocun

ISTANBUL (AA) - Germany's Federal Financial Supervisory Authority (BaFin) ordered a moratorium on Silicon Valley Bank's Germany branch on Monday.

The move came after the US regulators on Friday shut down the California-based Silicon Valley Bank, marking a shocking collapse.

The US-based commercial bank was the largest bank in Silicon Valley based on local deposits and it was the 16th-biggest bank in the country.

Its total assets were at around $209 billion while its deposits amounted to nearly $175.4 billion as of the end of 2022. The bank sold this week its $21 billion bond portfolio at a $1.8 billion loss.

BaFin said the bank is at risk of being unable to meet its obligations towards its creditors.

It added that the bank is not an important part of the country's banking system.