For immediate release
WASHINGTON — The Silicon Valley bank, Santa Clara, Calif., was closed today by the California Financial Protection and Innovation Administration, which has designated the Federal Deposit Insurance Corporation (FDIC) as the recipient. To protect insured depositors, the Deposit Insurance Corporation created the Santa Clara National Deposit Insurance Bank (DINB). At the time of closing, the FDIC as recipient immediately transferred all Silicon Valley Bank insured deposits to DINB.
All insured depositors will have full access to their insured deposits no later than Monday, March 13, 2023. The Deposit Insurance Corporation will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a custody certificate for the remaining amount of their uninsured funds. As the FDIC sells the Silicon Valley bank’s assets, future dividends may be paid to uninsured depositors.
Silicon Valley Bank had 17 branches in California and Massachusetts. The head office and all branches of Silicon Valley Bank will reopen on Monday, March 13, 2023. DINB will maintain normal business hours for Silicon Valley Bank. Banking activities will resume no later than Monday, March 13, including online banking and other services. The official Silicon Valley bank checks will continue to clear. Under the Federal Deposit Insurance Act, the FDIC may create a DINB to ensure that customers continue to have access to their insured funds.
As of December 31, 2022, the Silicon Valley bank had approximately $209.0 billion in total assets and approximately $175.4 billion in total deposits. At the time of closing, the amount of deposits in excess of the insurance limits was not specified. The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers.
Customers with accounts over $250,000 should contact the FDIC toll-free at 1-866-799-0959.
The FDIC as recipient will hold all assets from Silicon Valley Bank for later disposal. Loan customers must continue to make their payments as normal.
The Silicon Valley bank is the first FDIC-insured institution to fail this year. The last FDIC-insured institution to close was Elmina State Bank, Elmina, Kansas, on October 23, 2020.
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