svb: Encouraging SVB resolution will bring relief to startups: Information Technology Minister Ashwini Vaishnav

Amid US Administration Action to Protect Silicon Valley Bank Depositors, Information Technology Secretary Ashwini Vaishnav Monday said that SVB the resolution is “encouraging” and will bring relief to startups. The Biden administration announced that the investors of failed Bank of Silicon Valley will have access to their money from Monday.

“The SVB decision is encouraging. (It) will bring relief to startups,” Vaishnav told PTI.

US President Joe Biden on Monday tried to reassure Americans that they can have confidence in the “safety” of the US banking system and vowed to tighten banking regulations after a string of bank failures raised concerns about the country’s financial stability.

Federal regulators have withdrawn all Silicon Valley bank deposits.

The bankruptcy of Silicon Valley Bank last week has left many startups, tech companies, entrepreneurs and venture capital funds on edge and on edge.

California-based Silicon Valley Bank (SVB), the 16th largest bank in the United States, was closed on Friday by the California Department of Financial Protection and Innovation, which later appointed FDIC as his receiver.

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SVB is deeply rooted in the tech startup ecosystem and has become the default bank for many successful startups; its sharp fall marked one of the largest bank failures since the 2008 global financial crisis. The bank collapsed after customers—many of which were venture capital firms and venture capital-backed companies that the bank had cultivated over time—began to withdraw their deposits, creating a run on the bank. Having received advice from the boards of directors of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, and having consulted with the President, US Treasury Secretary Janet Yellen on Sunday approved actions to allow the FDIC to complete its decision on the Silicon Valley Bank (SVB) in Santa Clara, California in a way that fully protects all savers.

In this regard, the UK government announced on Monday that it helped major London banking company HSBC buy the UK arm of Silicon Valley Bank for £1, securing around £6.7 billion in deposits from more than 3,000 customers.

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