WORLD – USA
On Friday, US regulators announced the closure of Silicon Valley Bank (SVB), one of the country’s largest financial institutions and a key lender to tech start-ups. The move came after a massive influx of worried depositors into the bank.
Silicon Valley Bank was the 16th largest bank in the US and was hugely popular with technology start-ups. The bank’s closure is considered to be the biggest bankruptcy since the height of the 2008 financial crisis.
Analysts believe the bankruptcy was influenced by the Federal Reserve’s high interest rate. The closure of the bank was followed by a stock market crash, which caused a wave of excitement among investors.
The Federal Deposit Insurance Corporation (FDIC) says the main office and branches of Silicon Valley Bank will open on March 13, and all insured depositors will have access to their insured deposits no later than Monday morning.
The FDIC also notes that 89% of the bank’s $175 billion deposits at the end of 2022 were uninsured, so their fate is not yet clear.