BaFin Bans SVB Germany Branch on Disposals and Payments

The German Federal Financial Supervisory Authority – BaFin today has placed an order on Silicon Valley Bank (SVB) Germany Branch, banning the unit on disposals and payments.

The German watchdog explained that the branch is at risk of being unable to meet its obligations towards its creditors. Moreover, the bank was ordered to close for business with customers.

The parent company SVB, based in the US collapsed last Friday​, becoming the country’s second-biggest banking failure. And its UK branch SVB UK has been acquired by HSBC UK​ for a mere £1.

Domiciled in Germany since 30 May 2018, SVB Germany Branch conducts lending business in the country, not deposit business.

BaFin notes that the branch is not systemically important, and that the moratorium against the unit had to be ordered to secure the assets in an orderly procedure. In addition, it poses no threat to financial stability, the regulator continues.