Euro area has very limited exposure to SVB, Donohoe says

From a European perspective, we are well positioned, we’ve made such changes in our regulatory framework over the last decade

The Eurogroup chief said the situation was a reminder that risk and moments of change can happen very unexpectedly. Picture: Moya Nolan

The euro area’s exposure to the fallout from the collapse of Silicon Valley Bank is very limited, Eurogroup President Paschal Donohoe told Bloomberg Television in an interview on Monday.

“We’ve a very strong regulatory and resolution framework here in Europe,” he said. “But of course any banking development such as this does prompt questions, and of course we’ll discuss this today in the Eurogroup.” The European Commission and the European Central Bank have been monitoring developments and will discuss the matter with the currency bloc’s finance ministers at a meeting in Brussels later on Monday, Donohoe said.