Calvino calls for calm amid Silicon Valley bank collapse: ‘Spanish banks are healthy’

EU sends message of calm after Silicon Valley bank collapse The first vice-president of the government, Nadia Calvino, also did this regarding the situation of financial institutions in Spain, where they suffered a significant drop in the stock market. “We are in a moment of great turbulence in the international financial markets, especially due to this fragile situation in the case of some banks in the US, and in this context, Spanish banks will find themselves with a strengthened supervisory framework and their balance sheets.” They are in a healthy state,” he said upon his arrival in Brussels, where Eurozone finance ministers are meeting this Monday to analyze this unforeseen situation.

According to a representative of the European Commission, for now, the European Union claims to monitor the situation and ensure that the presence of the Silicon Valley bank in Europe is “very limited”. Subsequently, the Commissioner for Economy, Paolo Gentiloni, assured that he does not see a “specific risk” of infection in European subjects.

The first vice president spoke in the same vein: “I am not aware of any specific impact on the banks that are being impacted.” That’s how Calvino assesses the relationship between Spanish financial institutions and victims in the United States. The socialist leader called for calm when referring to the context of economic growth planned for 2023 in Spain.

“We’re going to be watching closely for possible developments, and we’re also going to be watching closely the response of the U.S. authorities, who acted quickly and wisely at this first moment,” Calvino added. By this time, the Federal Reserve – along with the US Deposit Guarantee Fund – had taken control of Silicon Valley Bank, promising to cover 100% of customer deposits and creating a one-year loan line for banks in need of liquidity. to assume the return of deposits from their clients.

Now that all eyes are on a possible change in monetary policy, and specifically a brake on interest rate hikes, Calvino also advocated moderation. “At this time and in the context of such intense volatility, it is necessary that all involved political agents, banks, financial institutions, persons responsible for fiscal and monetary policy, act with maximum prudence,” he said. At the March 16 meeting, where the European Central Bank plans to increase interest rates by another 0.5 percentage points.

Source: El Diario

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