A property managment representative gestures while asking reporters to clear the entrance area to Silicon Valley Bank in Santa Clara, Calif.
InternationalIndiaAfricaWASHINGTON (Sputnik) – A California regulator in a self-review said it failed to adequately assess the risks of the unusually rapid rise of Silicon Valley Bank (SVB) before the financial institution collapsed, and vowed to look more closely at entities with over $50 billion in assets.SVB, the first of three major US banks to collapse within two months, saw deposits rise 220% since Q1 2020, far surpassing the industry average growth rate of 25%, according to a Capital Advisors Group analysis. “SVB’s unusually rapid growth was not sufficiently accounted for in risk assessments,” the California Department of Financial Protection and Innovation (DFPI) said on Monday. “Although SVB had initiated remediation efforts, the regulators did not take adequate measures to ensure SVB did so with enough speed.” The DFPI, the report added, will review internal processes and ensure additional staff are assigned for banks with assets above $50 billion in line with accelerated growth and increased risk profile.
AmericasDebt Ceiling Battle and Federal Reserve Interest Hikes Could Wreck US Economy4 May, 18:41 GMTNew York’s Signature Bank failed two days after the SVB collapse and First Republic Bank of San Francisco had to be rescued last week. In a review of the US banking crisis published last month, the Federal Reserve took the rare step of conceding that it was a catalyst of the problem, including by failing to see SVB vulnerabilities before it was too late.
