America's Signature Bank also closed after SVB

The banking crisis in America is not taking its name. After Silicon Valley Bank (SVB), now Signature Bank has also been temporarily closed. Signature Bank had a stock of cryptocurrencies, due to its risk this bank has been closed for some time. The shares of this bank also saw a decline on Friday. Signature Bank is a regional bank in New York.
The Federal Deposit Insurance Corporation (FDIC) took over Signature, which had $110.36 billion in assets at the end of last year, according to New York State's Department of Financial Services.
The Federal Deposit Insurance Corporation and the Federal Reserve are planning to create a fund so that other banks are not affected by the SVL crisis. The US Federal Reserve has also called an emergency meeting on Monday i.e. March 13. In this, the US Federal Reserve Board of Governors will discuss measures to deal with this crisis.
The closure of America's Silicon Valley Bank (SVB) has created confusion in the minds of some customers of a 116-year-old Mumbai-based bank. A large number of customers reached the bank to know the status of their deposits. The bank also had to issue a statement to allay the apprehensions of the customers.
There is a bank in Mumbai Shamrao Vithal Sahakari Bank i.e. SVC. SVB of America and SVC Bank of Mumbai have similar names. This is the reason why the customers got misunderstood. After this, the bank issued a statement saying they have no relation with 'Silicon Valley Bank'. We request our members, customers and others not to pay heed to rumours.
Silicon Valley Bank had $ 189 billion in deposits in 2021. Silicon Valley Bank had bought several billion dollars of bonds with the money of its customers in the last 2 years, but it did not get a proper return on this investment due to low-interest rates. Meanwhile, the Federal Reserve Bank increased interest rates for tech companies.
Most of SVB's clients were start-ups and tech companies that needed funding for their businesses. In such a situation, she started withdrawing money from the bank. Investors in tech companies reduced due to rising interest rates. Due to the non-availability of funding, the companies also started withdrawing their remaining money from the bank. Due to frequent withdrawals, the bank had to sell its assets.
On March 8, SVB reported that it had sold several securities of the bank at a loss. Also, to strengthen its balance sheet, it announced the sale of new shares worth $ 2.25 billion. This created an atmosphere of fear among many big capital firms and the firms advised the companies to withdraw their money from the bank.
After this, the stock of SBV declined on Thursday, due to which the shares of other banks also suffered heavy losses. The claims of SVB were put on hold till Friday morning after investors were not found. In addition, several other bank stocks were also temporarily blocked on Friday, including First Republic, PacWest Bancorp and Signature Bank.