On Friday, the Californian authorities announced Silicon Valley Bank’s failure and its receivership under the FDIC.
Silicon Valley Bank was an established and important financial institution especially in the technology sector.
The FDIC has highlighted that the bank had about $175.4 billion in deposits.
The sheer scale of the bank means that SVB customers and non-customers will be impacted by its failure.
IMS is, as we speak, working with a number of clients which were SVB customers.
However, we are also here to support all our clients to understand how this may impact their US Operations.
This is an evolving situation, but this what we know as of today :
SVB Clients :
1-Will have access to FDIC insured $250,000 on Monday 13th of March (FDIC tool to estimate insured amount available here)
2-Will also receive a first advance payment on uninsured deposits & receivership certificates for the remainder – within the next week
3-Can reach out to SVB branches on Monday which will be open
4-The FDIC is asking SVB clients to switch to other banks for key services including : Automatic Payments, Bill Pay, Debit Card
5-Will have credit lines frozen and will not be allowed any overdrafts
For IMS clients that make payments to vendors or clients with SVB accounts we recommend reaching out to ask for alternative account information to make payments.
For more information you can visit the following links from FDIC website :
- FDIC – Failed Bank Information for Silicon Valley Bank, Santa Clara, CA
- FDIC – Press release : FDIC: PR-16-2023 3/10/2023
- FDIC – FAQ
Please reach out to IMS managers if you have been impacted or have concerns regarding Silicon Valley Bank’s failure.
Please note that the standard insurance amount is $250,000 per depositor at FDIC insured banks. (see FDIC website for more here)