The embattled Silicon Valley Bank has been closed by the California Department of Financial Protection and Innovation, naming the Federal Deposit Insurance Corporation as the receiver of insured deposits, the FDIC announced in a Friday press release.
“To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank,” the announcement reads.
The insured depositors can expect to withdraw their funds no later than Monday morning, March 13. Future dividend payments may be made to uninsured depositors as FDIC sells SVB assets.
The FDIC’s standard insurance covers up to $250,000 per depositor, per bank. Customers with accounts in excess of the said amount are asked to directly contact the insurer.
The startup-centric bank became the first FDIC-insured institution to fail this year after its shares fell 60% on Thursday on the news that SVB plans to raise more than $2 billion in capital. Trading at the bank was halted shortly before 9 a.m. EST, but not before its shares plunged another 60% on premarket.
The closure comes two days after crypto-friendly bank Silvergate announced its voluntary liquidation. As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits.