The European Union is monitoring the situation with Silicon Valley Bank (SVB) and its effects on the US banking sector, according to Mairead McGuinness, European Commissioner for Financial Services. While the EU’s direct impact is limited, McGuinness said that lessons must be learned for the European banking sector. McGuinness emphasised the dangers of high inflation, citing rising inflation and interest rates presenting different challenges to financial stability. European banks such as Société Générale, BNP Paribas, Deutsche Bank, Barclays and Credit Suisse have been affected by the fallout from the SVB collapse. McGuinness has urged lawmakers to learn from the crisis and implement more effective crisis management tools to protect financial stability, depositor confidence and taxpayers.