(Bloomberg) — The euro area’s exposure to the fallout from the collapse of Silicon Valley Bank is very limited, Eurogroup President Paschal Donohoe told Bloomberg Television in an interview on Monday.
(Bloomberg) — The euro area’s exposure to the fallout from the collapse of Silicon Valley Bank is very limited, Eurogroup President Paschal Donohoe told Bloomberg Television in an interview on Monday.
“We’ve a very strong regulatory and resolution framework here in Europe,” he said. “But of course any banking development such as this does prompt questions, and of course we’ll discuss this today in the Eurogroup.”
The European Commission and the European Central Bank have been monitoring developments and will discuss the matter with the currency bloc’s finance ministers at a meeting in Brussels later on Monday, Donohoe said.
Read more: SVB Crisis Exposes Lurking Systemic Risk of Tech Money Machine
The Eurogroup chief said the situation was a reminder that risk and moments of change can happen very unexpectedly.
“From a European perspective, we are well positioned, we’ve made such changes in our regulatory framework over the last decade,” he said. “We can monitor and respond back to developments if needs be.”
He added: “We never have any reason to be complacent, we know how fast things can change, and it’s why in a timely way today we’ll be able to get an update on where things stand at the moment, but I am confident that we have the ability to manage these kind of risks.”
Donohoe said the European Union will be looking at how to support the tech sector to ensure it’s still in a position to grow and that its prospects are not significantly impacted.
“I think our banking system in Europe at the moment understands the risk within European and global tech very well and has the right measures in place to manage that risk and to be able to deal with it in the time ahead,” Donohoe said.
–With assistance from Morwenna Coniam and Max Ramsay.
(Updates with comments from Eurogroup president starting in second paragraph.)
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