The bankrupt US "Silicon Valley Bank" will resume operations from the 13th and will respond to the payment of deposits protected by the FDIC = Federal Deposit Insurance Corporation.


However, nearly 90% of the deposit balance, approximately $156 billion, or more than 21 trillion yen in Japanese yen, is not subject to protection, and the focus will be on how much deposits will be returned to customer companies in the future.

Silicon Valley Bank, based in California, went bankrupt on the 10th due to insolvency, and the FDIC took over the assets as a trustee.



According to the FDIC, it will be the second largest bank failure in the United States after the 2008 Washington Mutual bankruptcy.



"Silicon Valley Bank" had temporarily suspended operations, but from the 13th, using the FDIC's deposit protection mechanism, deposits of up to 250,000 dollars and 33 million yen per account I am willing to accept payment.



However, about 156 billion dollars, or about 21 trillion yen in Japanese yen, which is 89% of the deposit balance of 175.4 billion dollars at the end of last year, is not subject to deposit protection.



In the future, the FDIC will pay the deposits by selling the assets of the "Silicon Valley Bank", but the focus will be on how much deposits will be returned to client companies.

Venture ``Possibility of impact on large Japanese companies''

Anise Uzzaman, CEO of Pegasus Tech Ventures, a venture capital in Silicon Valley, California, responded to an NHK interview about the impact of the bankruptcy of "Silicon Valley Bank".



This venture capital firm has start-up companies in the United States and other countries as customers, some of which had accounts in California-based Silicon Valley Bank, which became bankrupt on the 10th of this month.



Uzzaman said about the impact of bankruptcy on the American tech industry, ``More than half of all startups in the United States have some kind of deal with Silicon Valley Bank, and the impact cannot be ignored.''



"If the government doesn't bail out, it will have a huge negative impact on America's technological innovation over the next five to ten years," he said.



On top of that, regarding the impact on Japanese companies that are collaborating, such as investing in Silicon Valley startups, he said, "If the accounts of related startups are frozen, there will definitely be a short-term impact. Large Japanese companies will be affected. may also be affected," he said, emphasizing the need for relief measures by the U.S. government.



On the other hand, the CEO said, "The case of Silicon Valley Bank is a special case, and I don't think we can see the spread of other banks going bankrupt."

U.S. Treasury Secretary Yellen “Considering countermeasures”

U.S. Treasury Secretary Janet Yellen said in an interview with CBS television on the 12th that the U.S. banking system is safe, well-capitalized and sound.



He said he had no intention of bailing out the bank, but said he was "focused on thinking about our depositors and meeting their needs."



He also revealed that the bank is working with financial regulators to ensure that the bankruptcy does not spread to other banks.