Some Brazilian financial institutions with shares listed on the US market have announced that they have no exposure to Silicon Valley Bank, in order to avoid contagion from the bank’s collapse on their shares.
Between Saturday and Monday, Nu Holdings, Inter&Co and PagSeguro said in separate statements that, like their subsidiaries, they have no exposure to SVB, which specializes in financing tech startups.
Nu Holdings owns Nubank, while Inter&Co owns Banco Inter and PagSeguro owns PagBank. At around 1:15 pm (Brasilia time), Nu’s shares in New York were up 3.9%, while Inter Milan recorded a drop of 4.45%. Already PagSeguro’s rolls increased by 0.85%.
Sought after by Reuters, Mercado Livre, owner of Mercado Pago, also said in a statement that it has no deposits with SVB. Shares of the company, which bills itself as the largest online commerce and payments ecosystem in Latin America, rose 0.56% on Wall Street. The Uruguay-based company has most of its operations in Brazil.
Inter has more than 25 million customers in Brazil and the United States and operates in a wide range of financial services. Nu has more than 70 million customers, with operations in Brazil, Mexico and Colombia. Mercado Livre is present in 18 countries, including Brazil, Mexico, Colombia and Chile.
Silicon Valley Bank was shut down by regulators in the United States on Friday, making it the largest bank to fail in that country since the 2008 financial crisis amid a sharp drop in deposits by startups at the institution. in the wake of a venture capital funding drought.
SVB was the product of decades of cheap money, with unique risks that made it particularly vulnerable. Concerns that other regional banks have similarities to it quickly spread, prompting US officials to launch emergency measures on Sunday.
Source: Terra
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