FRANKFURT – German Chancellor Olaf Scholz sought to assuage fears that the collapse of Silicon Valley Bank and problems at Credit Suisse might trigger a new financial crisis, saying a more resilient banking system and stronger economy ensured savings were safe.
“I do not see the risk,” Scholz told German business daily Handelsblatt. “The monetary system is no longer as fragile as it was before the financial crisis,” referring to events in 2008 which included the collapse of Lehman Brothers.
His remarks come after Credit Suisse borrowed up to $54 billion from Switzerland’s central bank to shore up its liquidity and restore investor confidence and follows the demise of Silicon Valley Bank earlier this month.
“The deposits of German savers are safe. Not only because of the higher resilience of the banking system and stricter regulation, but also because of our economic strength,” Scholz was quoted as saying.
“And we see that in the U.S., in Great Britain and most recently in Switzerland, those responsible have acted quickly and decisively.”