Good news for Silicon Valley’s customers, Ashwini Vaishnav said – relief to startups.

Silicon Valley Bank: Amidst the steps taken by the US administration to protect the depositors’ money of Silicon Valley Bank (SVB), Information Technology Minister Ashwini Vaishnav said that SVB’s resolution is ‘reassuring’ and Startups will get relief. US President Joe Biden’s administration has announced that depositors of the failed Silicon Valley Bank (SVB) will be able to withdraw their funds. In this whole matter, Vaishnav said, ‘SVB’s solution is reassuring. Startups will get relief from this.

Steps taken to maintain confidence in the banking system

After the bankruptcy of America’s big bank SVB (SVB), America has taken steps to maintain public confidence in the banking system. With the aim of saving the American economy, the Biden administration announced that the depositors of this bank would be able to access their money. An official statement said that with the recommendation of the Federal Deposit Insurance Corporation (FDIC) and the Central Bank Federal Reserve, approval has been given to fully protect the interests of the depositors.

FDIC approved to take action

Following talks with President Joe Biden, Treasury Secretary Janet Yellen has approved the FDIC to take steps to complete the bank’s resolution and protect depositors’ interests. Silicon Valley Bank, the 16th largest bank in the US, was shut down by the California Department of Financial Security.

The Department of Financial Security has appointed the FDIC as the bank’s conciliator. The bank ran into trouble when its customers, including venture capital firms and those backed by them, started withdrawing their deposits. (Input: PTI)