Shanghai Bank Considers Buying Silicon Valley Bank’s Stake in Chinese Subsidiary – Featured Bitcoin News
According to reports, Shanghai Pudong Development Bank could acquire the China-based subsidiary of Silicon Valley Bank (SVB). Authorities in the Chinese city of Shanghai are reportedly supporting the takeover, which could help minimize the impact of SVB’s closure. The SPD Silicon Valley Bank reportedly said in its statement after SVB’s demise that its operations had remained stable.
Shanghai authorities are trying to limit the impact of SVB’s demise
According to a report, Silicon Valley Bank’s joint venture partner, Shanghai Pudong Development Bank (SPDB), plans to take over the China-based subsidiary of the collapsed financial institution. According to the report, SPDB is expected to acquire a 50% stake in the subsidiary from the collapsing US bank.
The plan to keep the financial institution’s subsidiary afloat came just days after the Bank of England helped facilitate HSBC’s takeover of the failed bank’s UK subsidiary. UK authorities have vowed to take over the subsidiary for £1 ($1.22), which it says will protect depositors without using taxpayers’ money.
According to a report by the South China Morning Post, Shanghai banking authorities may back the takeover, which could help the city weather the storm triggered by SVB’s abrupt shutdown. The report added that the city’s local government and banking regulators had discussed the possibility of SPDB acquiring the subsidiary, which operates as SPD Silicon Valley Bank in China.
While Shanghai banking authorities are also open to the idea of a non-Chinese company buying the subsidiary, analysts cited in the report said that option may not be the most ideal for clients who want a quick fix to the problem.
Meanwhile, in its statement following the spectacular collapse of SVB, the SPD Silicon Valley Bank is said to have said that its operations remained stable. The subsidiary pointed to China’s banking regulations that require it to keep an independent balance sheet separate from its parent company.
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Source: Crypto News Deutsch