The United States authorities have taken steps to temporarily stop the operations of the Silicon Valley Bank, one of the largest banks in the United States, after its collapse yesterday (10).
The collapse of the bank is the worst financial crisis the United States has faced since the collapse of the financial system in 2008. The basic operation of this bank was to provide the necessary financial facilities to the technological companies located in the Silicon Valley of California, America.
With the rapid increase in interest rates by the US government last year, the bank was unable to produce the expected funds due to the low-interest rates of the securities invested by this bank. There, the bank lost US$1.8 billion.
As a result, last Thursday and Friday, the bank faced a crisis of not being able to repay the money to the people who deposited money in the bank. The report also states that with this situation, the United States Federal Deposit Insurance Corporation has intervened to protect depositors.
Analysts say that with the collapse of these banks, the United States stock market has also been severely affected, and it may also affect the global financial market.