US Federal Deposit Insurance Corporation (FDIC) announced Friday that it closed Silicon Valley Bank (SVB) after the institution failed to raise capital to resolve its crisis. According to the release, to protect depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB), to which it transferred all of Silicon Valley Bank's insured deposits.
"The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors," read the statement.
In addition, the release also notes that Silicon Valley Bank's main office and all branches will resume operations on Monday, March 13, 2023. Official Silicon Valley Bank checks will continue to be cashed.
