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FDIC creates DINB to protect depositors of Silicon Valley Bank

FDIC creates DINB to protect depositors of Silicon Valley Bank

Silicon Valley Bank, Santa Clara, California, was closed on Friday by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver.

To protect insured depositors, the FDIC has created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC immediately transferred to the DINB all insured deposits of Silicon Valley Bank.

All insured depositors will have full access to their insured deposits no later than March 13. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.

Silicon Valley Bank had 17 branches in California and Massachusetts. The main office and all branches of Silicon Valley Bank will reopen on Monday, March 13, 2023. As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits. The last FDIC–insured institution to close was Almena State Bank, Almena, Kansas, on October 23, 2020.

PR Newswire

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