Signature Bank Closes Following SVB, What's The Fate Of The Deposit?

Signature Bank (Photo: Doc. NY Post)

JAKARTA - New York-based Signature Bank, the main lender in the crypto industry, closed on Sunday (12/3/2023) by regulators.

The shutdown is due to a similar systemic risk exemption jointly announced by the US Treasury Department, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC).

The move came two days after the California Silicon Valley Bank (SVB) collapsed as deposits rushed to withdraw their funds.

"All Signature Bank deposits will be paid in full," the joint statement said.

"Just like the Silicon Valley Bank resolution, no losses are borne by taxpayers," the question added, quoting Antara.

Authorities also said "specific shareholders and debt holders that are not guaranteed will not be protected."

Founded in 2001, Signature Bank was a commercial bank leased by the state of New York and guaranteed by the FDIC, with total assets of around 110.36 billion US dollars and total deposits of around 88.59 billion dollars on December 31, 2022, according to a separate statement released on Sunday (12/3/2023) evening by the New York Ministry of Financial Services.

California authorities closed the SVB on Friday (10/3/2023) after the tech start-focused lender reported heavy losses from securities sales, triggering a decline in bank deposits.

The collapse of the SVB was the largest bank failure since the collapse of the Washington Mutual US savings and loan association in 2008.

The Fed on Sunday (12/3/2023) announced a new emergency loan program to increase the capacity of the banking system