Shillong, March 13: Effects of failure of two regional banks in the United States were seen in the Asian markets today even as Silicon Valley Bank (SVB) was bailed out.
The two banks – SVB and Signature Bank – collapsed within a week in the US due to economic slowdown. The collapse on Friday of SVB, which specialises in venture-capital financing largely in the tech sector, came after a huge run on deposits left it unable to stay afloat on its own.
On Sunday another bank – Signature Bank – was shut by the New York regulators.
The US government took steps to stop a crisis after the failure of SVB, assuring all depositors at the failed institution that they could access all their money quickly.
Signature Bank is the third largest bank with assets of more than $110 billion. SVB is the largest bank to fail since the 2008 financial crisis. The failure of two major banks has worried economists across the world and the effects of this were seen today even in Asian markets.
