The bankruptcies of US banks SVB and Signature do not pose a danger to French financial institutions, finance and economy minister Bruno Le Maire said Monday.
“I don’t see any risk of contagion, so there’s no special warning” to issue to local lenders, Le Maire told broadcaster Franceinfo.
The minister said that Paris’ banks and financial system were “solid” with “a high liquidity ratio” to withstand shocks.
What’s more, unlike Silicon Valley Bank — which focused on cutting-edge technology firms — French lenders “are not exposed to a single sector” but are “very diversified”, Le Maire added.
US regulators on Sunday stepped in to ensure depositors’ access to their funds at SVB, having taken it over on Friday after it was hit by a run of withdrawals.
Depositors will also be protected at New York-based Signature, which was closed on Sunday after its stock price tanked.
Major European stock markets were down sharply on Monday morning.
