The banking model in Europe and Spanish banking has nothing in common with that of SVB. The problems of the North American bank are confined to that entity and a very specific business model: that of a regional bank with a lighter level of regulation and supervision compared to national institutions. <\/p>\n
SVB was negatively impacted in its assets (over 55% fixed income) and liabilities (funding) by the interest rate hike decided by the Fed. This differs from European banks, which have a high proportion of credit in their assets. <\/p>\n
Strong and more volatile deposit withdrawals, concentrated among corporate clients in the technology sector with high cash consumption and limitations in funding rounds, in a world interconnected by social media, forced that bank to sell bonds at significant losses to cover these outflows, as a capital increase was not possible.<\/p>\n
This bank was not subject to a regulatory framework to cover interest rate risk on its balance sheet, nor was it, unlike in Europe, obliged to comply with the demanding liquidity ratios of eurozone banks.<\/p>\n
The European Systemic Risk Board had already warned a few months ago about the need to be prepared for the deterioration of economic activity and the instability of financial markets in a context of official interest rate normalization.<\/p>\n
In line with that recommendation, Spanish banks have become very solid, possess a diversified and stable deposit base, are subject to strict supervision, and comply with demanding liquidity requirements.<\/p>\n