Silicon Valley Bank (SVB), America’s 16th largest bank, has closed.
With this, the bank’s 40-year run has come to an end. The regulators closed the bank on Friday and seized the deposits.
Silicon Valley Bank, the 16th largest bank in the US, has been shut down by regulators.
This is the second largest collapse of a financial institution in US history by a capital crisis. Earlier, Washington Mutual failed after the 2008 financial crisis.
The bank was not able to return the depositors’ money due to its inability to manage liquidity. According to the international media, the depositors who have deposited up to 250,000 US dollars in SVB are safe.
The Federal Deposit Insurance Corporation of America (FDIC) insures the deposit of up to 250,000 US dollars in a bank.
Founded in 1983, the bank has long been known as one of the top lenders to crypto companies in the US lending to IT companies.
The loans given to crypto firms and the recent rise in interest rates and the crisis in the crypto market have brought the bank into a sinking situation.
The bank gave loans equal to 2 trillion 9 billion US dollars, and the bank had deposits equal to 1 trillion 75 billion US dollars.
Reference: w News