The United States regulators announced that they have shut down the 16th largest financial institution in the country, Silicon Valley Bank (SVB). It was reported that the move came after the bank started experiencing a bad run amidst concerns raised by depositors.
SVB, a major lender to US startups since the 1980s, was closed down on Friday 10th of March 2023 after a run on deposits made it no longer tenable for the medium-sized bank to stay afloat on its own.
According to the Federal Deposit Insurance Corporation (FDIC), the bank is the first federally insured institution to fail since 2020. The regulator said that as of December 31, 2022, SVB had around $209.0 billion (€196 billion) in total assets and about $175.4 billion in total deposits.
As of the time of reporting, the corporation is yet to find a buyer for SVB but has however assured those who have insured deposits with the Bank that their fund will be available by Monday morning as they secure deposits for US investors especially when banks fail, securing up to $250,000 per depositor.