Admin l Tuesday, March 14, 2023
BERLIN – Chancellor Olaf Scholz has offered words of reassurance to investors in Germany following the recent bank failures in the United States.
The country’s financial authorities had reacted clearly, sharply and quickly, showing “that this situation is being watched very closely,” Scholz said in Berlin.
“This is the best that can be done for the security of investments. In this respect, there is really no reason for anyone here in Germany to be very worried,” Scholz added.
He also stressed that since the financial crisis of 2008 and 2009, considerable progress had been made in financial supervision, but also in bank management. “We have learned,” Scholz said.
On Friday, the California-based Silicon Valley Bank (SVB), which specializes in start-up financing, was placed under state control after a failed emergency capital increase led to run on deposits.
This caused unrest worldwide, with other banks also coming under pressure on the stock exchange. On Sunday, the New York-based Signature Bank was also closed.