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America’s government steps in to protect depositors at Silicon Valley Bank

The US government has stepped in to protect depositors at Silicon Valley Bank and Signature Bank after the institutions collapsed. Banks can pledge Treasuries, mortgage-backed securities and other qualifying assets for cash advances.

1 min read
  • Silicon Valley Bank (SVB) and Signature Bank, a New York-based lender with $110bn in assets, have both collapsed.
  • The US Treasury, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) have taken action to fully repay depositors in both banks.
  • The FDIC's deposit-insurance fund will bear any residual costs and depositors will have full access to their money on Monday morning.
  • The US government has set up a new lending facility, called the bank term funding programme, at the Fed.
  • Banks can pledge Treasuries, mortgage-backed securities and other qualifying assets as collateral to receive the face value of the debt in exchange for a cash advance.
America’s government steps in to protect depositors at Silicon Valley Bank
As SVB and a rival collapse, regulators have expanded their role as a backstop | Finance & economics
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