Irish bank shares drop sharply following SVB collapse

Bank of Ireland was down by over 7% on Monday morning, with notable share price drops across AIB and Permanent TSB

"Speaking on the fallout this morning, Pascal Donohue told reporters, "We’ve a very strong regulatory and resolution framework here in Europe."

Irish bank shares have seen notable declines on Monday in line with other European banks as the impacts of Silicon Valley Bank's collapse continues to materialise.

AIB was down over 6.5% at 10 am, dropping fast from a previous close price of €3.84. Similarly, Bank of Ireland also saw prices drop, falling by just over 7% after 10am, down from a close price of €9.88.

Permanent TSB's share price fell by 8% shortly just after 9.30am before recovering slightly to just 4% below the bank's previous close price of €2.51.

Similar trends are being recorded across Europe, with the STOXX bank index falling by 4.3% on Monday morning, having already fallen by 3.78% on Friday.

Germany's Commerzbank also fell notably by 7.5%, with Credit Suisse also down by just under 8% as the SVB collapse pushes the cost of insuring the Swiss bank's bonds to its highest-ever price on record, according to Bloomberg.

In the UK, HSBC's London-listed shares fell by 2.6% after the bank announced that it would acquire SVB's UK subsidiary for £1 (€1.13) in an effort to curb the fallout across Britain.

The Federal Deposit Insurance Corporation is seizing the assets of Silicon Valley Bank, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis. The FDIC ordered the closure of Silicon Valley Bank and immediately took position of all deposits at the bank Friday. (AP Photo/Jeff Chiu)

Speaking on the fallout this morning, Pascal Donohue told reporters, "We’ve a very strong regulatory and resolution framework here in Europe."

"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.”

SVB fell into receivership on Friday after a round of large-scale withdrawals among tech-startup investors following concerns over the bank's parent company selling over $21bn (€19.69bn) of securities from its portfolio at a loss of $1.8bn (€1.69bn).

By the end of last week, SVB failed to find a buyer or raise new equity and was put into receivership by the Federal Deposit Insurance Corp on Friday.

The collapse of SVB marks the largest bank failure since Washington Mural in 2008 during the peak of the financial crisis.