Silicon Valley Bank’s closure has sent shockwaves through the tech industry, impacting numerous Indian startups that relied on the bank’s services. The bank failed after a run on deposits and is the biggest failure since the 2008 financial crisis.
The news was announced by CNBC Television, which reported that the bank was closed as of today. The closure is a major blow to the tech industry and is expected to have long-standing implications.
According to TechCrunch, many Indian startups had relied on the bank for loans and had put their trust in it to help them grow. However, the sudden closure has left many scrambling for alternatives.
The New York Times reported that Silicon Valley Bank’s failure was a result of a run on deposits, which saw customers withdrawing their funds en masse. The bank had reportedly been struggling for some time, and the sudden rush on deposits was the nail in the coffin.
Bloomberg reported that the collapse was not the fault of regulators. In fact, the bank was FDIC-insured, meaning that depositors are protected up to a certain amount. However, the failure has still sent shockwaves through the tech industry.
The closure of Silicon Valley Bank is a major event that will have implications for years to come. It is a stark reminder of the fragility of the financial system and the need for businesses to have contingency plans in place. The fallout from this event is likely to be felt throughout the tech industry and beyond.