US Says Silicon Valley Bank Depositors Will Have Access to Their Money on Monday

Joshua Ramos
Bank of England to Place Silicon Valley Bank UK into Insolvency Procedure
Source: Bloomberg

The US has said that all Silicon Valley Bank depositors will have access to their money on Monday. Moreover, the news arrives after US Treasury Secretary, Janet Yellen, has stated the government’s commitment to helping depositors amidst the bank’s surprise closure.

CNBC reported that banking regulators had devised a plan today to help combat growing fear and panic over the fall of SVB Financial. Subsequently, the Federal Reserve announced a Bank Term Funding Program to aid those affected by the bank’s downfall.

SVB Depositors Protected by Regulators

The collapse of SVB Financial is undoubtedly one of the biggest news stories in the financial sector this year. Conversely, its fairly has incited a string of worries for many concerned over the largest bank failure since 2008.

Now, the US has said that Silicon Valley bank depositors will have access to their money on Monday. That decision arrived following US Treasury Secretary, Janet Yellen’s statements of the government’s commitment to aiding those affected by the sudden collapse.

Source: Bloomberg

CNBC reported that the Federal Reserve is orchestrating a Bank Term Funding Program. Specifically, this initiative will be “aimed at safeguarding deposits at the failed institution.” Moreover, it will aid in quelling some of the concerns that the SVB collapse could incur a bank run.

“This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy,” the FED said in a statement. Adding, “The Federal Reserve is prepared to address any liquidity pressures that may arise.”