Banking Sector: Recently, information about the failure of many banks has come to the fore in America and Europe. Along with this, the talk of global recession is getting deeper.
Meanwhile, now a bank is going to be sold and this deal has also become final. In fact, the Federal Deposit Insurance Corporation (FDIC) has said that North Carolina-based First Citizens Bank will buy the troubled Silicon Valley Bank (SVB).
In the banking sector
America, Silicon Valley Bank failed recently. After this, now this bank is being bought. The failure of SVB had taken the entire banking industry by surprise and there was an atmosphere of concern about the banking sector across the world. In such a situation, this deal has happened at a time when the confidence of the investors has been shaken. However, now they can heave a sigh of relief.
The FDIC and other regulators took major steps to protect depositors and prevent further deepening of the financial crisis. In this sequence, it was guaranteed that the customers of SVB and another failed bank of America would be able to access their entire funds. Now the customers of SVB have themselves become the customers of First Citizen.
It is also included that
17 branches of SVB will now open as First Citizen’s branches only. Two days after Silicon Valley Bank failed on March 10, New York’s Signature Bank also went under. New York Community Bank had agreed to buy a majority stake in Signature Bank, but the search for a buyer for SVB continued. The FDIC said in a statement that the sale also included the sale of all of SVB’s deposits and loans.