All loans and deposits from one of the largest US banks, Silicon Valley Bridge Bank (SVB), which declared bankruptcy in early March, will be transferred to First Citizens Bank & Trust Company. On this subject informed March 26 Federal Deposit Insurance Corporation (FDIC).
First Citizens Bank will accept $56 billion in SVB deposits and $72 billion in loans. $90 billion in securities and other assets will remain available to the FDIC.
Starting March 27, all 17 branches of Silicon Valley Bridge Bank will begin operations as part of First Citizens Bank & Trust. SVB depositors will automatically become First Citizens Bank & Trust Company depositors, the regulator said in a statement. All deposits will continue to be FDIC insured up to the insured limit.
On March 10, when Silicon Valley Bank filed for bankruptcy, its total assets were approximately $167 billion and its deposits were $119 billion. The FDIC estimates the damage caused by the failure of Silicon Valley Bank to its deposit insurance fund at about $20 billion.
California Silicon Valley Bank was the 16th largest bank in the United States. On March 10, 2023, it declared bankruptcy, which was the biggest collapse of a financial institution in the United States since the crisis of 2008. It happened after the bank’s customers withdrew $42 billion of their accounts in one day.
After California bank, New York Signature Bank and crypto bank Silvergate Capital collapsed.
On March 14, the international rating agency Moody’s lowered the rating of the American banking system from stable to negative.
