Silicon Valley Bank Collapse
March 18 , 2023
- 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.