CEO of SVB successor bank urges customers to come back

CEO of SVB successor bank urges customers to come back
Credit: Belga

The CEO of Silicon Valley Bridge Bank, set up by US regulators to succeed Silicon Valley Bank (SVB) after its collapse, on Tuesday called on customers to bring their deposits back to the bank so that it can continue to do business.

SVB, which became insolvent after massive customer withdrawals, was placed on Friday under the control of the authorities, who handed over its management to the Federal Deposit Insurance Corporation (FDIC), the US agency responsible for guaranteeing bank deposits.

“We are doing everything we can to rebuild, win back your confidence and continue supporting the innovation economy,” Tim Mayopoulos, who was appointed head of the new institution by the FDIC on Monday, wrote in a message.

The bank is getting its various systems back up and running, “making new loans and fully honouring existing credit facilities,” he said.

“The number one thing you can do to support the future of this institution is to help us rebuild our deposit base, both by leaving deposits with Silicon Valley Bridge Bank and by transferring back deposits that left over the last several days,” he urged.

The FDIC has guaranteed that all of the bank’s pre-failure customers would have access to their full deposits, including above the usual $250,000 limit.

The bank “is also open to any new customers,” Mayopoulos stressed.

Copyright © 2024 The Brussels Times. All Rights Reserved.