US regulators have shut down Silicon Valley Bank (SVB) amid its sudden collapse, the Federal Deposit
Insurance Corporation (FDIC) announced in a statement on Friday. SVB was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as a receiver, it said. FDIC created the Deposit Insurance National Bank of Santa Clara (DINB) to protect insured depositors, while it immediately at the time of closing transferred all insured deposits of SVB to the DINB, it added. The troubled commercial bank, located in Santa Clara, was the largest bank in Silicon Valley based on local deposits. It was among the biggest banks in the country. Its sudden collapse left many venture capital firms and millions of individuals in the US tech sector with uncertainty surrounding their deposits, loans, and investments, also sending ripples among tech firms trading on the Nasdaq and the cryptocurrency community. The FDIC, which insures deposits and examines financial institutions for safety and consumer protection, said all insured depositors will have full access to their insured deposits no later than Monday morning. While uninsured depositors will be paid in advance dividends within the next week, they will receive a receivership certificate for the remaining amount of their uninsured funds, said FDIC, adding that future dividend payments may be made available to uninsured depositors as it sells the assets of SVB. Customers with accounts over $250,000 were asked to contact the FDIC, which typically covers up to that amount per depositor. SVB had approximately $209 billion in total assets and around $175.4 billion in total deposits as of the end of 2022, according to the FDIC.
Source: Philippines News Agency
