NEW YORK: The head of Silicon Valley Bridge Bank, created by United States regulators to succeed Silicon Valley Bank (SVB) after it collapsed, on Tuesday (Mar 14) urged fleeing depositors to return with their money, as large banks see an influx of funds.
Silicon Valley Bank – a key lender to start-ups across the US since the 1980s – collapsed after a sudden run on deposits, prompting regulators to seize control last Friday.
“The number one thing you can do to support the future of this institution is to help us rebuild our deposit base,” chief executive Tim Mayopoulos said in a statement, “both by leaving deposits with Silicon Valley Bridge Bank and transferring back deposits that left over the last several days.”
He added: “We are doing everything we can to rebuild, win back your confidence and continue supporting the innovation economy.”
The Federal Deposit Insurance Corporation (FDIC) has said that it will cover all SVB depositors, including beyond the usual cap of US$250,000 for FDIC protection.
“We are making new loans and fully honouring existing credit facilities,” Mayopoulos said.
SVB’s failure last Friday, the largest US bank failure since 2008, was preceded on Wednesday by the liquidation of Silvergate Bank, a small regional institution favoured by the cryptocurrency community.
Last Sunday, authorities also forced Signature Bank, the nation’s 21st largest bank, to close.
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