After receiving clearance to rename as Shanghai Innovation Bank, Silicon Valley Bank’s Chinese joint venture will become a fully owned subsidiary of Shanghai Pudong Development Bank, a Chinese financial regulator announced late on Friday.
One of the worst bank failures in American history occurred last year at Silicon Valley Bank (SVB), leaving its joint venture, SPD Silicon Valley, with Shanghai Pudong Development Bank (SPD), in the dust as no bidders materialized to take over SVB’s portion.
The National Financial Regulatory Administration’s Shanghai branch said in a statement on Friday that it had reached an agreement with the bank to modify its shareholder ratios so that SPD owns all of the shares and to reduce the bank’s registered capital from 2 billion to 1 billion yuan ($141 million).
