TNPSC Thervupettagam

Silicon Valley Bank Collapse

March 18 , 2023 399 days 422 0
  • The Silicon Valley Bank was closed by California banking regulators of USA.
  • This is the biggest retail banking failure since the global financial crisis in 2008.
  • US regulators shuttered Silicon Valley Bank (SVB) and took control of its deposits.
  • Silicon Valley Bank is known for lending money to some of the biggest technology startups.
  • Silicon Valley Bank invested most of its assets in US bonds.
  • To bring down the inflation rates, the federal reserve last year began raising interest rates, which resulted in the bond values going down.
  • It had lost nearly $2 billion.
  • After the bank's closure, nearly $175 billion of customer deposits are now under the control of the Federal Deposit Insurance Corporation (FDIC).
  • The FDIC has created a new bank, the National Bank of Santa Clara.
  • That will now hold all the assets of Silicon Valley Bank.

Leave a Reply

Your Comment is awaiting moderation.

Your email address will not be published. Required fields are marked *