Fed issues important statement to reassure depositors after SVB bankruptcy

On the morning of March 13 (Vietnam time), the Fed's website released a joint statement from the Treasury Department , the Fed, and the Federal Deposit Insurance Corporation (FDIC) regarding the bankruptcy of Silicon Valley Bank (SVB).

The agencies are taking decisive action to protect the U.S. economy by reinforcing public confidence in the U.S. banking system and ensuring that the U.S. banking system continues to perform its critical role of protecting deposits and providing access to credit to households and businesses in a way that promotes strong and sustainable economic growth, the statement said.

Outside a branch of Silicon Valley Bank (SVB). (Photo: AP)

The statement stressed that from March 13, depositors at SVB have access to all their money and taxpayers will not suffer any losses related to the (consequences of) SVB's settlement.

The statement also said that on March 12, the Fed announced that it would provide additional capital to qualified depository institutions to help ensure that banks have the ability to meet the withdrawal demands of all depositors.

The U.S. banking system remains resilient and on solid footing, largely thanks to reforms implemented after the financial crisis to ensure better protections for the banking industry, the statement said.

“Those reforms combined with today’s actions demonstrate our commitment to taking the necessary steps to ensure that depositors’ savings remain safe,” the statement stressed.

(Source: Tin Tuc Newspaper)

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Source: https://vtc.vn/fed-phat-di-thong-bao-quan-trong-tran-an-nguoi-gui-tien-sau-su-kien-svb-pha-san-ar747742.html