Silicon Valley Bank resolution will bring relief to startups after collapse: Ashwini Vaishnaw
Amid the US administration’s decision to back the collapsed Silicon Valley Bank (SVB) despots, IT Minister Ashwini Vaishnaw said the developments are “reassuring” and will bring relief to startups.
The Biden administration in the United States has announced that depositors at the failed Silicon Valley Bank will have access to their money starting Monday. Federal regulators have taken action to support all SVB filings.
“The SVB resolution is reassuring. (It) will bring relief to startups,” Vaishnaw told PTI.
US President Joe Biden on Monday sought to reassure Americans that they could trust the US banking system was ‘safe’ and promised tougher banking regulations after a string of bank failures took hold. raised concerns about the country’s financial stability.
After receiving recommendations from the boards of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, and consulting with the president, U.S. Treasury Secretary Janet Yellen on Sunday approved actions allowing the FDIC to conduct to successful resolution of the case based in Santa Clara, Calif. Silicon Valley Bank in a way that fully protects all depositors.
Shockwaves from the fall of Silicon Valley Bank continued to rock global banking stocks, however, as claims by President Biden and regulators did little to quell broader market concerns.
However, the US administration’s stance brought much-needed hope to startups struggling to recover deposits locked with the California lender. The startups are working with Indian and international banks to find ways to transfer their funds after the US regulator made the accounts accessible to depositors. The banks are in talks with startups to speed up the opening of accounts at the bank branches of the International Financial Services Center in the gift city of Gujarat. The startups, which have done business with SVB but have accounts at other US banks, are looking to transfer funds.
The failure of Silicon Valley Bank last week left many startups, tech companies, entrepreneurs and venture capital funds jittery and jittery. SVB, the 16th largest bank in the United States, was shut down on Friday by the California Department of Financial Protection and Innovation which then appointed the FDIC as receiver.
SVB was deeply embedded in the tech startup ecosystem and the default bank for many high-flying startups. Its precipitous fall marked one of the largest bank failures since the 2008 global financial crisis. the bank had grown over time – began to withdraw their deposits, creating a run on the bank.
The UK government announced on Monday that it had helped major London-based bank HSBC buy the beleaguered UK branch of Silicon Valley Bank for £1, securing deposits from more than 3,000 customers worth around £6. £.7 billion (about Rs. 67 crore).
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