The collapse of the Silicon Valley Bank is causing uncertainty around the world.
In order to prevent a run on the banks, the US government is working feverishly on a solution.
Update, March 13, 10:31 a.m .:
The crisis at Silicon Valley Bank is spreading.
On Monday, the financial services regulator Bafin imposed a moratorium on the German subsidiary of SVB.
This means that the branch in this country has been practically completely shut down.
Because of "the existing risk for the fulfillment of obligations to creditors", the Bafin also issued a sale and payment ban on the bank.
Fear of financial collapse: Next bank will be closed – US government guarantees deposits
First report from March 13, 08:33
: After the difficulties of the Silicon Valley Bank (SVB) and another bank from New York, the US government is working feverishly on a solution.
Washington has announced that all deposits with the financial institutions will be protected.
Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and the US deposit insurance company FDIC said in a joint statement that all SVB depositors would be fully protected and would be able to access all their money from Monday (March 13).
A similar regulation also applies to Signature Bank in New York, which was closed by its state licensing authority on Sunday.
US President Joe Biden said people don't need to worry about their deposits.
He also announced consequences for those who triggered the turmoil.
Silicon Valley Bank: Failed emergency capital increase on Friday
On Friday, the Silicon Valley Bank, which specializes in start-up financing, was temporarily closed after a failed emergency capital increase and placed under state control.
This caused unrest around the world.
The SVB, founded in 1983, had seen huge withdrawals of funds in the past few days as a result of liquidity concerns.
SVB shares were suspended from trading on Friday after a price slide due to the acute emergency.
Other banks also came under considerable pressure on the stock exchange.
Fear of loan defaults in the banking sector increased again.
The problems of the US banks also caused uncertainty on the European stock exchanges.
The Dax had increased its losses from the past week on Monday.
The banking sector remains a concern for investors.
A market observer explained that the possible consequences of the collapse of the Silicon Valley Bank (SVB) in the USA are currently being weighed up.
Shortly after the start of trading, the leading German index fell by 0.38 percent to 15,370.01 points.
The MDax lost 0.35 percent to 27,901.85 points.
The Eurozone leading index EuroStoxx 50 fell by 0.49 percent to 4208.84 points.
Silicon Valley Bank: Authorities react to nervous financial markets
The US Treasury, the US Federal Reserve and the deposit insurance company FDIC tried to counteract the general nervousness.
The US banking system remains resilient and is on solid footing, the joint statement said.
The steps now decided are important measures to protect the US economy by strengthening public confidence in the American banking system.
"The taxpayer will not incur any losses related to the resolution of Silicon Valley Bank," it said.
This also applies to the Signature Bank.
The Ministry of Finance said the measures were intended to help depositors, not to bail out the banks themselves. They had taken risks and had to bear the losses themselves.
It is not a situation like the 2008 financial crisis.
Yellen had previously ruled out a government bailout of Silicon Valley Bank.
In the financial crisis a few years ago, the government intervened in this way, Yellen said in an interview with CBS on Sunday.
But she emphasized: "We won't do that again."
Fear of rush to banks: Biden tries to calm down
Biden emphasized that the solution that has now been found is about protecting American workers and small businesses and keeping the financial system secure.
"The American people and American companies can trust that their bank deposits will be there when they need them," stressed the US President.
On Monday he wants to comment on how to proceed to maintain a resilient banking system and protect the economic recovery.
(dpa/df)