[REGNUM] SVB Financial Group, the parent company of US Silicon Valley Bank, has filed for bankruptcy, the company said in a press release.
"SVB Financial Group... has filed a voluntary reorganization petition... with the United States Bankruptcy Court for the Southern District of New York to preserve value," it said in a statement.
From RIA Novosti:
About 200 banks in the US could repeat the fate of SVB, study shows
Economists on the background of the bankruptcy of Silicon Valley Bank (SVB) found that almost 200 US credit institutions are at risk, writes the Wall Street Journal.
Silicon Valley Bank collapsed after rising rates sapped the value of its assets and worried clients withdrew uninsured deposits. In a new study, economists said they found 186 banks that could be exposed to similar risks.
The report says that economists in a study published in the Social Science Research Network calculated the losses of banks during the Fed's rate hike campaign, and also studied the share of bank funding from uninsured depositors. "At 186 US banks, they estimate that in the event of withdrawals by uninsured depositors, insured depositors may face depreciation because the bank will not have enough assets," the report said.
In such a scenario, regulators will have to intervene, the newspaper writes.
In March, California regulators closed Silicon Valley Bank (SVB), the largest bank failure in the US since the 2008 financial crisis. The collapse of the SVB turned out to be associated with an increase in the Fed's key rate, which led to the depreciation of assets on the balance sheets of many financial institutions.
The US authorities announced support measures. In addition, the closure of the crypto-focused bank Silvergate and the similar New York-based Signature Bank were announced.
In Europe , one of the largest banks in Switzerland , Credit Suisse, has faced problems.
Related:
Silicon Valley Bank: 2023-03-16 Fed criticized for missing red flags before bank collapse
Silicon Valley Bank: 2023-03-16 Credit Suisse stock plunges 25% amid fears of global banking contagion
Silicon Valley Bank: 2023-03-16 SVB donated $73M to Black Lives Matter movement, social justice causes
Silicon Valley Bank: 2023-03-16 Fed criticized for missing red flags before bank collapse
Silicon Valley Bank: 2023-03-16 Credit Suisse stock plunges 25% amid fears of global banking contagion
Silicon Valley Bank: 2023-03-16 SVB donated $73M to Black Lives Matter movement, social justice causes