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Silicon Valley Bank Crisis: The US government has taken a big step to maintain people’s trust in its country’s banking system and to keep the economy stable. The Biden government has announced that those depositing money in Silicon Valley Bank can withdraw. From today i.e. March 13, 2023, permission has been given to withdraw money.
After receiving a recommendation from the boards of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve and consulting with the President, Treasury Secretary Janet Yellen on Sunday gave the FDIC approval to withdraw deposit money from Silicon Valley Bank.
Silicon Valley Bank has no effect on depositors
According to Bloomberg’s report, an official statement said that this California-based bank will protect the money of all depositors and allow them to withdraw. They can withdraw their money from March 13. Any loss associated with the resolution of Silicon Valley Bank (SVB) will not be borne by the taxpayer. This statement has been issued jointly by the Treasury Department, the Federal Reserve and the FDIC.
How much money can the depositor withdraw?
According to the Interagency Federal Statement, shareholders and holders of certain unsecured debt will not be protected. That is, they will not be able to withdraw money. It states that any loss caused to the Deposit Insurance Fund to help uninsured depositors will be compensated through a special assessment by banks. However, it is not yet known how much the money will be withdrawn.
additional funds will be released
The government will give additional funds to the bank for this. The statement said that this step will ensure that the US banking system continues to play its important role of deposit security and providing access to credit to households and businesses. California-based Silicon Valley Bank, the 16th largest bank in the United States, was closed on Friday and control was handed over to the FDIC.
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