Exactly one week ago, the German financial regulator imposed a moratorium on the German branch.
(Photo: REUTERS)
Frankfurt The German branch of Silicon Valley Bank (SVB) is reopening – under a new name and with a new license. The Bafin gave the institute permission to operate the lending business, as the financial regulator announced on Monday. “The institute is not subject to any sales or payment bans and may be opened for dealings with customers,” according to the authority.
Exactly one week ago, the Bafin had imposed a moratorium on the German branch, the “Silicon Valley Bank Germany Branch”. The bank then had to close. The reason for this was the collapse of the US parent company, which also called into question the existence of the associated German branch.
The US authorities put together a support package for the US institute, which gave all customers continued access to their accounts. However, this no longer ran through the SVB, but through the newly founded “Silicon Valley Bridge Bank” – a bridge bank to which all deposits of the SVB were transferred.
Silicon Valley Bank Germany is now called SVB Germany
At the same time, it received permission from the authorities to conduct banking business – and also applied for a license for its new branch in Germany, SVB Germany. This was granted on Monday.
Thus, the German branch has a new name and a new license, but de facto takes over the business of the previous German branch. The moratorium to which the original branch was subject is now in vain.
The Silicon Valley Bank has also been represented in Germany since 2018. However, the German branch was only allowed to grant loans and not accept deposits. Credit customers were generally young, mostly loss-making companies. In the past three years, the institute has more than tripled its balance sheet total. At the end of 2022, it was 789.2 million euros.
More: Bafin closes German Silicon Valley Bank