NEW YORK: First Citizens will acquire much of Silicon Valley Bank, the tech-focused financial institution that collapsed this month, setting off a chain reaction that caused a second bank to fail and tested faith in the global banking sector. The Federal Deposit Insurance Corp. and other regulators had already taken extraordinary steps to head off … Read more
Until early March, investors worldwide were expecting the US Federal Reserve to raise interest rates by a smaller quantum of 25 basis points this month as inflation cooled off for the 8th straight month in February. However, the collapse of two commercial banks – Silicon Valley Bank and Signature Bank – changed things overnight and … Read more
A shock similar to one experienced by Silicon Valley Bank (SVB) is unlikely to occur in India owing to stringent regulation, supervision and accounting requirements for Indian banks, brokerage firm Anand Rathi said in a note. “Unlike in the United States, Indian banks must make provision for all unrealized marked-to-market losses outside their held-to-maturity (HTM) … Read more
Zurich-headquartered Credit Suisse Group AG, which is the latest bank in news, is the second largest global investment bank and financial services firm in Switzerland. It is the 12th largest foreign bank in India, owning assets worth Rs 20,700 crore. However, the firm has been in financial trouble over the past 2-3 years and has … Read more
Silicon Valley Bank, (SVB), one of the most prominent banks in the US, proudly tweeted on March 7, 2023, that Forbes has awarded/recognised them as “one of the best banks in America”. However, just three days later, on March 10, 2023, SVB suffered a massive collapse, the brevity of which has been compared to the … Read more
Global bond markets have declared that the steepest global monetary tightening campaign in a generation has nearly run its course. In the span of days, traders have dramatically unwound bets on further rate hikes and current pricing shows the Federal Reserve is likely going to increase rates twice more at most. It’s a similar picture … Read more
As the fallout from the collapse of Silicon Valley Bank is starting to spread around the world, experts say the Indian banking system is unlikely to witness any major spillover effects. However, there will be some impact on the sentiment of the market. “The collapse of SVB will not have any effect on the Indian … Read more
Gold closed with a gain of nearly 0.70% in the week gone by, erasing steep losses made on Federal Reserve Chair Powell’s hawkish testimony. It ended the week at $1867.24. Gold gained on worries about the US banks as Silicon Valley Bank defaulted, which led to spillover concerns. Some softer than expected data in the … Read more
Investors and depositors tried to pull $42 billion from Silicon Valley Bank on Thursday in one of the biggest US bank runs in more than a decade, according to a Friday regulatory filing. At the close of business on March 9, the bank had a negative cash balance of $958 million, according to an order … Read more