THE Chinese joint venture of failed U.S. lender Silicon Valley Bank (SVB) said Saturday it has a sound corporate structure, an independently operated balance sheet and isn’t affected by the turmoil surrounding the U.S. bank.

SPD Silicon Valley Bank (SSVB), SVB’s venture with Shanghai Pudong Development Bank, said in a statement it “always operates in a regulated and stable manner in accordance with Chinese laws and regulations.”

Startup-focussed SVB became the biggest U.S. lender to fail in more than a decade after a tumultuous week that saw an unsuccessful attempt to raise capital and a cash exodus from the tech startups that had fueled the company’s rise.

U.S. regulators stepped in and seized it Friday in a stunning downfall for a lender that had quadrupled in size over the past five years, roiling global markets and stranding billions of dollars belonging to companies and investors.

SVB’s troubles are raising concerns in China because the joint venture has been aggressively lending to startups and funds that can’t borrow from traditional banks, according to people familiar with the matter.

SVB set up SSVB in 2012 and offers several banking products and services in China, including working capital and trade finance, according to its website.

The joint venture had a registered capital of 2 billion yuan (US$289 million) as of the end of June, with its Chinese and U.S. parents each holding half of the shares, according to Shanghai Pudong’s public filings.

The venture had total assets of 21.3 billion yuan and recorded a net loss of 5.5 million yuan in the first half of 2022, according to the filings.

Shanghai-based SSVB is China’s first technology and innovation bank. It is also the first Sino-U.S. joint venture bank.

SSVB’s mission is to increase innovative companies’ probability of success by providing unique financial products and services, targeting sectors including biotech, green technology, advanced manufacturing and digital transformation, according to its website.

(SD-Agencies)