JAKARTA – The users of Silicon Valley Bank (SVB) are confirmed to be able to gain access to their deposits and savings on Monday (13/3) after the bank was closed last Friday (10/3).

Quoted from Reuters, the higher-ups of the Fed (Central Bank of United States of America) claimed that the deposit holders will be given access to the funds that they have deposited in SVB. “There are no loss related to the dissolution of SVB that will be charged upon taxpayers,” the Fed stated.

The statement was given by the Fed following the winding-down of SVB, and it is intended to prevent the systemic ripple that will disrupt the financial condition in the US from starting. Following its dissolution, SVB is now reportedly under the supervision of California Department of Financial Protection & Innovation and Federal Deposit Insurance Corporation (FDIC).

SVB is declared not able to meet the adequate sum of capital after on last Wednesday (8/3), the company publicly announced that it would need USD 2.25 billion of capital to be able to proceed. Then, within 48 hours, the long-lasting glory of this bank, which was established in 1983 in Santa Clara, started to give out.

The dissolution of SVB reportedly affected several indexes in Asia and Europe stock exchanges. STOXX Europe 600 were seen declining 1.4% during the London’s closing, the lowest closing record since the beginning of January 2023. Hang Seng Index in Hongkong Stock Exchange was also seen declining 3%, followed by Shanghai China of 1.4% decrease, Kospi Korea of 1% decline, and Jakarta Composite Index of 0.51% correction. (LK/ZH)