Nubank, Inter&Co, PagSeguro and Market Livre say they have no exposure to SVB – 03/13/2023 – Market

Some Brazilian financial institutions with shares listed on the US market announced that they have no exposure to Silicon Valley Bank, in order to avoid contagion of the bank’s collapse on their shares.

Between Saturday and this Monday (13), Nu Holdings, Inter&Co and PagSeguro said in separate press releases that, like their subsidiaries, they have no exposure to the SVB, which specializes in financing technology startups.

Nu Holdings owns Nubank, while Inter&Co owns Banco Inter and PagSeguro owns PagBank. Nu shares in New York closed up 0.66%, while Inter was down 5.76%. Already the roles of PagSeguro rose 2.35%.

Sought by Reuters, Market Livre, owner of Market Pago, also stated in a note that it has no deposits at SVB. The shares of the company, which presents itself as the largest online commerce and payments ecosystem in Latin America, had fallen by 0.49% on Wall Street. The company, headquartered in Uruguay, has most of its operations in Brazil.

Inter has more than 25 million customers in Brazil and the United States and operates in a range of financial services. Nu has more than 70 million customers, with operations in Brazil, Mexico and Colombia. Market Livre is in 18 countries, including Brazil, Mexico, Colombia and Chile.

Silicon Valley Bank was closed last Friday by regulators in the US, making it the biggest bank to fail in that country since the 2008 financial crisis, amid a sharp decline in deposits by startups at the institution, in the wake of a drought of venture capital financing.

SVB was the product of decades of cheap money, with unique risks that made it especially vulnerable. Concerns that other regional banks bear similarities to it quickly spread, prompting US officials to launch emergency measures on Sunday.