Germany’s Bundesbank held a crisis team talk on Monday over the collapse of Silicon Valley Bank in the US, though the European Union said it had no plans to meet.
The German central bank’s financial crisis team met in the morning as eurozone lenders saw share prices take a hit in the wake of the US lender’s failure, according to Reuters, with Commerzbank down nearly 12% and Deutsche Bank 5% lower.
It does not have the power to make decisions though, with the responsibility laying on the European Central Bank, which is understood not to have plans to meet over SVB’s collapse.
European banks generally have a more “conservative” mix of assets, according to a senior EU supervisor, adding direct effects were unlikely to be felt on the continent unless the fallout spread to larger US banks.
Whether Bundesbank will make any recommendations following the meeting remains to be seen, through its regulatory counterpart BaFin has already placed a moratorium on SVB’s German branch.
Banque de France has also reportedly held off holding a meeting, in line with the ECB’s reassuring tone.
JP Morgan reassured it did “not believe there is a banking crisis in the making and the SVB situation is somewhat unique," meanwhile, but does "expect increased investor scrutiny" on bond portfolios, alongside “increased regulatory oversight of smaller (European) banks” in the future.