Silicon Valley Bank (SVB) meltdown caused the largest bank failure in the US since the 2008 financial crisis and the second-largest in U.S. history. Reuters reported that 89% of its US$175 billion in deposit liabilities were not covered by federal deposit insurance.
The collapse of Silicon Valley Bank has caused a ripple effect across the tech sector. Cash reserves of many startups were were held by SVB. There are many Armenian startups who also impacted by this situation.
https://t.me/threenstartups
#svb #meltdown
The collapse of Silicon Valley Bank has caused a ripple effect across the tech sector. Cash reserves of many startups were were held by SVB. There are many Armenian startups who also impacted by this situation.
https://t.me/threenstartups
#svb #meltdown
3N Startups
Silicon Valley Bank (SVB) meltdown caused the largest bank failure in the US since the 2008 financial crisis and the second-largest in U.S. history. Reuters reported that 89% of its US$175 billion in deposit liabilities were not covered by federal deposit…
Some more financial analysis on SVB situation.
If you look at the bank's balance sheet as of end of 2022 you'll notice that the structure of their assets is quite healthy and the bank can cover its liabilities.
The bank reported a residual of $14B in cash and $194B Securities & Loans. In the meantime the liabilities included $173B of deposits and $19B of Debt.
So, it looks like the situation is not that bad and the bank will be able to cover its debts and deposits with existing assets.
However, the devil is in details and according to Genuine Report, $117.4 of the bank's Securities & Loans (60% of its securities & loans) are unreliable.
The information that these assets are not reliable became known to the market and generated panic. Due to panic, holders of $173.2B deposit holders rushed to withdraw their money from the bank which resulted in liquidity crunch.
https://t.me/threenstartups
#svb #meltdown
If you look at the bank's balance sheet as of end of 2022 you'll notice that the structure of their assets is quite healthy and the bank can cover its liabilities.
The bank reported a residual of $14B in cash and $194B Securities & Loans. In the meantime the liabilities included $173B of deposits and $19B of Debt.
So, it looks like the situation is not that bad and the bank will be able to cover its debts and deposits with existing assets.
However, the devil is in details and according to Genuine Report, $117.4 of the bank's Securities & Loans (60% of its securities & loans) are unreliable.
The information that these assets are not reliable became known to the market and generated panic. Due to panic, holders of $173.2B deposit holders rushed to withdraw their money from the bank which resulted in liquidity crunch.
https://t.me/threenstartups
#svb #meltdown