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Silicon Valley Bank collapsed suddenly

Views: 0     Author: Site Editor     Publish Time: 2023-03-15      Origin: Site

Recently, the Bank of Silicon Valley Bank collapsed and publicly announced bankruptcy. After the above news came out, the US domestic financial industry shocked, a large number of storeders fell into panic, and banks fell straight. At the same time, the Federal Reserve has also become the focus of attention from the international community.


Many securities firms have directly pointed out that the reason why Silicon Valley Bank is in bankruptcy is because the Fed continues to raise interest rates, which has led to continued increase in risks in the US financial industry. It is worth mentioning that in the past year, for the past year, for the various purposes such as curbing inflation, the Fed has launched eight interest rate hikes, which is relatively radical.

After the Fed continued to raise interest rates, the yield of bonds has increased, and prices have continued to fall. At the same time, the cost of financing of technology companies has increased, which has led to the problem of capital flow in Silicon Valley.


It is reported that Silicon Valley Bank is a regional small and medium -sized bank. It mainly provides financing services for some technology companies and other technology companies. It has not developed any retail business. For technology companies, when the monetary policy is relatively loose, it is easier for enterprises to gain investment. They can deposit these funds into Silicon Valley Bank. However, after the Fed launched multiple rounds of interest rate hikes, the financing difficulty of technology companies will increase. Cash withdrawal in Silicon Valley Bank, which causes difficulties in Silicon Valley Bank to have difficulty in cash flow.

In order to meet the customer's withdrawal needs, Silicon Valley Bank can only choose to sell some assets, but at this time the price is relatively low, which has brought greater losses to Silicon Valley Bank. After the news of the bankruptcy of the Silicon Valley Bank came out, many analysts believe that the incident will have a certain impact on the US financial market and combat investors' confidence. However financial crisis.


After the bankruptcy of Silicon Valley Bank, many customers went to the bank to queue up to withdraw cash, but did not get money. In the absence of sufficient funds, some companies may face the disaster, which will affect the continuity of the company.

With the increasing impact of the incident, the US President Biden also had a dialogue with California Governor's Governor Newer, but the White House did not announce specific news. In addition, in order to avoid affecting investors' confidence, some Chinese companies have spoken on this matter. A few days ago, the United States publicly stated that the company did not have the assets of Silicon Valley Bank, and the bank's bankruptcy would not have any impact on the US group.



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