European Commissioner Says Impact of SVB Collapse ‘Limited’ as Credit Suisse Drags Down Banking Stocks

European Commissioner Says Impact of SVB Collapse "Limited" as Credit Suisse Drags Down Banking Stocks

Silicon Valley Bank’s (SVB) collapse has had a “limited impact” on the European Union but authorities must still “stay alert” to events as they unfold, European Commissioner Mairead McGuinness has said. Despite McGuinness’ reassuring remarks, stocks of Europe’s largest banks still plunged by as much as 10% on March 15. Silicon Valley Bank’s ‘Limited’ EU Impact

According to the European Commissioner for financial services, Mairead McGuinness, the collapse of the U.S. bank Silicon Valley Bank has so far had limited impact on the European Union (EU). However, in her March 15 remarks before the EU parliament, McGuinness said the region’s authorities should “stay alert” to the unfolding events in the international markets.

McGuinness also revealed that the European Commission (EC) is currently monitoring the banking situation in the United States and that it hopes to learn important lessons.

“The direct impact on the European Union seems to be limited but we should reflect on whether there are lessons to be learned for the European Union’s banking sector,” the commissioner told the EU parliament.

Credit Suisse Drags Down European Banking Stocks

Prior to McGuinness’ remarks on the impact of SVB’s collapse on the EU, an unnamed spokesperson for the European Commission was quoted in a Reuters report stating the bank had an insignificant presence in the region, hence the limited impact. While the commission expects the EU to emerge from the latest U.S. banking system crisis largely unscathed, McGuinness however warned that rising inflation still remains a key threat.

However, despite McGuinness’ reassuring remarks, stocks of Europe’s largest banks still plunged by as much as 10% on the same day. The stocks were dragged down by Credit Suisse, Switzerland’s second-largest bank, whose shares hit an all-time low after the group’s main shareholder, the Saudi National Bank, said it could no longer bail out the beleaguered entity.

According to a report, the Saudi National Bank’s decision was made after a PwC audit revealed “material weaknesses” in Credit Suisse’s internal controls. As of writing, Credit Suisse shares have seen marked recovery on Thursday, after news of assistance from the Swiss National Bank. Tags in this story credit suisse, EU Parliament, european commission, inflation, Mairead McGuinness, Saudi National Bank, Silicon Valley Bank collapse

What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Signature Bank Closure Has Nothing to Do With Crypto, Says Regulator FINANCE | 2 days ago HSBC Acquires Silicon Valley Bank UK — Sale Facilitated by Government, Bank of England FINANCE | 3 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleRepublican Congressman Tom Emmer Queries FDIC on Alleged Efforts to Purge Crypto Activity from US Next articleUS Senator: Signature Bank Collapsed Because It Embraced Crypto Customers Without Sufficient Safeguards Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days

Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Iran to Increase Penalties for Unauthorized Cryptocurrency Mining Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin