How Silicon Valley Bank’s Collapse Could Trigger a Global Financial Meltdown | Explained

2023
Silicon Valley Bank (SVB) was founded in 1983 and grew to become one of the most influential banks in the US, especially in the tech sector. SVB had over $100 billion in assets and more than 30,000 clients, including some of the biggest names in Silicon Valley such as Airbnb, Uber, Stripe, and Coinbase. However, on Friday, March 10th 2023, SVB announced that it was unable to meet its obligations and filed for bankruptcy protection. This triggered a massive panic among its depositors who rushed to withdraw their money from SVB accounts. The bank was unable to cope with this sudden demand and ran out of cash within hours. The Federal Deposit Insurance Corporation (FDIC) stepped in to take over SVB’s operations and assets but could not guarantee full reimbursement for all depositors