Market sources have preliminarily observed that although Silicon Valley bank failure has caused concerns, the risk of spreading to the financial market is very small.
The US Silicon Valley Bank closed on Friday (March 10). This is the closure of local banks since the global financial crisis in 2008.
The news caused the three major US stock indexes to fall on Friday, down from 1.07 % to 1.76 %.After the news of Silicon Valley Bank's problems was spread on Thursday, the local time in the United States, the Asia -Pacific stock market fell in an all -round way. The Singapore Strait Times index fell 1.15 % on Friday.
Market sources have preliminarily observed that although Silicon Valley Bank has caused concerns, the risk of spreading to the financial market is very small.
Federal DEPOSIT Insurance Corporation (FDIC) stated on Friday that the California Financial Protection and Innovation Department has officially closed Silicon Valley Bank on Friday.
Customers are mostly investment institutions for science and technology innovation companies
Silicon Valley Bank, established in 1983, is a very special bank in the United States. Customers are mostly technology startups and investment institutions, including game companies ROBLOX and streaming equipment manufacturers.As of the end of last year, it owned $ 209 billion (S $ 281.9 billion) assets and about $ 175.4 billion in deposits.
Silicon Valley Bank's operation model is different from traditional banks. It relies on high leverage financing, capital chain and assets. Therefore, the balance sheet is more likely to be affected by emergencies fluctuations.
After entering the interest rate hike cycle in the United States, its asset prices fell significantly.Coupled with changes in the financing environment, the starting company began to consume deposits continuously. Silicon Valley Bank had to lose money to sell assets due to the reduction of deposits.Negative news caused concerns about the storage households. On Thursday, I tried to withdraw $ 42 billion in deposits from the bank on Thursday.
Silicon Valley Bank Financial Group (SVB Financial), the US stock market, has collapsed before the opening of Silicon Valley Bank Financial Group, and the stock price is 62 %.SVB Financial has suspended stock transactions shortly afterwards, and then FDIC announced the emergency confiscation of Silicon Valley Bank's assets.
The Wall Street Journal quoted the insider, saying that Silicon Valley Bank had originally wanted to deal with the financial crisis through financing. Helpless borrowers changed their temporary hexagrams. The bank had to turn to find a bank buyer.
Treasury Secretary Yellen: The Bank of America is still tough
Silicon Valley Bank is mainly facing the technology industry, and major US banks still have good balance sheets and sufficient capital, which means that the overall US banking industry is unlikely to generate a chain reaction like the Lehman brothers in 2008, causing a global financial stormSystemic economic issues.
The US Treasury Minister Yellen convened multiple departments to meet on Friday, emphasizing that the Ministry of Finance is paying close attention to the situation, and the US Banking system "is still full of toughness."
Yellen said that when banks are facing financial losses, this is indeed a "worrying issue."However, the US Banking system is still tough. She has sufficient confidence in the banking supervisors and completely believes that the banking regulatory agency will take appropriate action.
Wall Street is not worried that the incident will cause large -scale systemic risks.Analysts of financial institutions such as JP Morgan Stanley, JP Morgan, and Wells Fargo pointed out that the financing pressure faced by Bank of Silicon Valley Bank was very special, and banks should not be considered to be affected by connection.Because the liquidity of large banks is much higher than that of small banks, their business models are more diversified, with a lot of capital, the risk pipe control is better, and the regulators are more strict supervised.
However, the mood of restlessness and anxiety is shrouded in Silicon Valley, and American science and technology enterprises are worried about the impact of the closure of Silicon Valley.Many technology companies and private equity funds have deposits in Silicon Valley Bank. Now the banks are frozen, and some affected companies may not pay wages.
