NEW YORK–The fallout from the failures of the two banks is also being felt by countries outside the United States.
Foreign regulators are still looking into potential fallout in their economies, and some are beginning to act, according to an analysis conducted by the Washington Post.
The Post said the following countries have taken action or are reviewing potential action, including:
United Kingdom
The British government and the Bank of England helped facilitate HSBC’s takeover of Silicon Valley Bank’s U.K. operations for less than $2.
Canada
Canadian regulators announced a temporary takeover of the assets of the local SVB branch. The Office of the Superintendent of Financial Institutions said in a statement that it intends to seek permanent control of the bank’s assets and has applied for a winding-up order to be issued by the attorney general.
The bank had a branch in Toronto and lent primarily to corporate clients, the statement said, the Post reported, adding that Peter Routledge, the superintendent of financial institutions, said in the statement: “I want to be clear: the Silicon Valley Bank branch in Canada does not take deposits from Canadians.”
India
The junior minister for skill development and entrepreneurship, Rajeev Chandrasekhar, held a virtual meeting with hundreds of start-ups and funds that might be affected. He said the ministry will recommend that India’s central bank make it easier for domestic banks to extend credit services to Indian start-ups working in the United States. The government will help them “navigate this storm,” he said in a text message, the Post reported.
In India, early-stage start-ups focused on U.S. markets are most affected, Ashish Dave, CEO of the Mirae Asset venture investments firm, told the Post. “There was too much uncertainty on Friday, but with the Fed action, the risk has gone down,” he said by telephone.
Sweden
Alecta, a Swedish pension fund and one of the biggest investors on the country’s stock market, had investments in SVB and Signature Bank. “The impact on the future pension payments of our clients is very small.” Jacob Lapidus, a spokesman for Alecta, said in an email to the Post.
The country’s financial regulator said SVB’s collapse does not threaten its financial stability. The agency said in a statement that is in contact with Alecta, local banks and companies to study their exposure to risk, according to the report.
Germany
German regulators have banned SVB’s local branch from making withdrawals and payments. BaFin, the financial authority, said in a statement that the bank was at risk of not being able to meet its obligations, but added that it posed no threat to financial stability, the Post reported. The total assets of the bank in Germany amounted to just over 789 million euros, or about $844 million, and it has done business in the country since 2018, the statement said.
Israel
Prime Minister Benjamin Netanyahu said in a tweet that he was closely following developments and that Israel would take steps to help the liquidity crunch that companies might face.
The country said it is forming a committee, including representatives from the central bank and securities regulator, to examine the impact on the economy.
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