Silicon Valley Bank (SVB), one of the largest banks in the US and the biggest bank in Silicon Valley California, collapsed yesterday on 10th March 2023 after it run on its deposits. SVB was the largest lender to fail since 2008 financial crisis.
SVB had focussed on lending to tech companies. Its main customers were largely tech startups and other tech-centric companies. Its failure will have adverse ripple effect on Indian startups as well because failure of SVB will reduce their fund-raising ability. Many Indian startups had deposits with SVB.
In UK, Bank of England intends to apply to the Court to place Silicon Valley Bank UK Limited (‘SVBUK’) into a Bank Insolvency Procedure.