Investor Shostak has described the implications for the US banking system of the collapse of Silicon Valley Bank
The U.S. banking system can expect shocks in the near future due to the collapse of Silicon Valley Bank (SVB), one of the largest banks in the country, but it will not cause a crisis of the entire financial system. This was stated by the director of the American investment company Navigator Principal Investors Kyle Shostak.
As Shostak noted, SVB has not the scale to bring down the entire U.S. banking network.
‘This bank was not the right size – it wasn’t up to $250 billion in deposits, it was somewhere between $210 billion and $220 billion in deposits. So, it was the 16th largest bank in the U.S., so it was in the top 20, but it was not the largest,’ RIA Novosti quoted the head of the company as saying.
Now the bankruptcy of Silicon Valley has affected only on estimates of those banks that are comparable to it in size: their shares in recent days have fallen in price seriously, as, for example, the First Republic Bank, the expert explained.
According to Shostak, the California-based wine companies will be the hardest hit in this situation, because it was the main bank they used. He also noted that the bankruptcy of SVB would aggravate the crypto sector, as Silicon Valley Bank was one of the main partners of the cryptocurrency, the value of which has now fallen significantly.