Silicon Valley Bank (SVB) was closed on Friday by the authorities in the US state of California after it failed to raise money with the issue of new shares. As a result, the bank was no longer able to meet its obligations. The federal public service FDIC has been appointed as administrator.
SVB had taken out loans when interest rates were low, but because interest rates have risen sharply in recent months, the bank had difficulty refinancing its loans. When customers tried to withdraw their deposits en masse, the California regulator decided to close the bank.
FDIC, the organization that provides insurance to customers, will open SVB’s headquarters and 17 branches in California and Massachusetts on Monday. Then customers can also access their money again. Balances up to 250,000 dollars (235,000 euros) are insured.
At the end of last year, SVB managed more than USD 175 billion in assets. This made it the sixteenth-largest bank in the United States.
The last time a bank in the United States that was covered by the FDIC insurance system failed was in October 2020, when the Almena State Bank of Almena (Kansas) went under.
:strip_icc():format(jpeg)/kly-media-production/medias/4353641/original/004413900_1678431341-Screenshot_2023-03-10_134350.jpg "Telegram Launches Power Saving Mode Feature, HP Battery Becomes More Efficient")