The impact of the 'Silicon Valley Bank' bankruptcy is spreading all over the world, what is the future of the world economy?
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It has been reported that the impact of the bankruptcy of the major American bank 'Silicon Valley Bank' that occurred on March 10, 2023 is beginning to spread around the world, including Europe and Asia. There are concerns that the bankruptcy of Silicon Valley Bank, which has been actively investing in startups, will have a negative impact on startups around the world.
SVB Fallout News: Spreading Problems Around the World - Bloomberg
https://www.bloomberg.com/news/articles/2023-03-11/svb-fallout-spreads-around-the-world-as-uk-firms-plea-for-help#xj4y7vzkg
Bank of London submits rescue bid for UK arm of Silicon Valley Bank | Business News | Sky News
https://news.sky.com/story/bank-of-london-weighs-rescue-bid-for-uk-arm-of-silicon-valley-bank-12830933
Silicon Valley Bank collapse is impacting many Indian startups | TechCrunch
https://techcrunch.com/2023/03/11/silicon-valley-bank-collapse-is-impacting-many-indian-startups/
Bank of England statement: Silicon Valley Bank UK | Bank of England
https://www.bankofengland.co.uk/news/2023/march/boe-statement-silicon-valley-bank-uk
Silicon Valley Bank's China joint venture says operations stable and independent amid US parent's collapse | South China Morning Post
https://www.scmp.com/business/china-business/article/3213190/silicon-valley-banks-china-joint-venture-says-operations-stable-and-independent-amid-us-parents
SVB Collapse (SIVB) and FDIC Auction on March 12, 2023 - Bloomberg
https://www.bloomberg.com/news/articles/2023-03-12/fdic-auction-for-svb-said-to-be-underway-final-bids-due-sunday
Silicon Valley Bank, based in Santa Clara, California, USA, has been actively investing in startups with many technology companies as customers. However, in March 2023, the stock price of Silicon Valley Bank plummeted, causing a bank run. The bank announced bankruptcy on March 10, and it was revealed that it will be under the control of the Federal Deposit Insurance Corporation (FDIC).
What kind of bank is 'Silicon Valley Bank' and why did it fail? -GIGAZINE
At the beginning of the bankruptcy announcement, the upper limit of deposit insurance protected by the FDIC was stipulated as a maximum of 250,000 dollars (about 33.6 million yen) per account, so the startup that received investment from Silicon Valley Bank froze the account. There were concerns about the impact of temporary suspension of work due to non-payment of salaries to employees. After that, on March 12, 2023, the United States Treasury Department, Federal Reserve Board (FRB), and Federal Deposit Insurance Corporation (FDIC) jointly announced a statement that 'all deposits will be protected.'
US Treasury Department and FRB announce full deposit protection of failed 'Silicon Valley Bank' and 'Signature Bank' - GIGAZINE
Silicon Valley Bank's business partners are located all over the world. For example, in India, more than 60 startups have deposited more than $ 250,000 (about 33 million yen) in Silicon Valley Bank, and about 25 companies have loaned $ 1 million (about 133.8 million yen). is said to have received However, some startups were reportedly unable to withdraw funds from their accounts because they immediately moved their Silicon Valley bank deposits and didn't have another bank account available.
In the UK, the British corporation of Silicon Valley Bank has applied for bankruptcy proceedings, and the British government is looking for new buyers for the bank in order to prevent the spread of damage such as deterioration of cash flow to technology companies. ``Given the importance of lenders to some customers, the failure of Silicon Valley Bank will have a significant impact on British technology companies,'' said UK Finance Minister Jeremy Hunt. The auction accompanying the solicitation of purchasers of Silicon Valley Bank UK is scheduled to take place until the morning of March 13, 2023 local time.
The Bank of England and Oak North Bank , which are the central banks of the United Kingdom, are in talks to acquire Silicon Valley Bank of England. Bank of England CEO Anthony Watson said, ``Given the size and services of Silicon Valley banks, we cannot afford to lose them in bankruptcy.''
by graham chandler
However, some customers said, ``No bailout or support in any form should be provided by the British government.'' British taxpayers in the UK should not spend a penny to bail this out. '
Meanwhile, SPD Silicon Valley Bank, a joint venture in China between Shanghai Pudong Development Bank and Silicon Valley Bank, announced that it continues to operate in a healthy manner. A spokesperson for SPD Silicon Valley Bank said, 'SPD Silicon Valley Bank has always operated stably in accordance with Chinese laws and regulations with its standard framework and independent balance sheet .'
The FDIC, which has the Silicon Valley Bank of America under its control, has started a competitive bid for the sale of the Silicon Valley Bank on March 11, 2023. The bid to acquire Silicon Valley Bank will close on the afternoon of March 12, 2023 local time, after which the acquirer will be revealed.
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