Silicon Valley Bank, which mainly serves technology, venture capital, and start-up companies, has now closed down, and its deposits have been seized by US regulators.

(Reuters)

[Financial Channel/Comprehensive Report] After revealing huge losses and failure to increase capital, SVB Financial Group (SVB) has been declared bankrupt by U.S. regulators. Moody’s, an international credit rating agency, downgraded SVB and its subsidiaries on Friday (10th). Ratings from Silicon Valley Bank.

Moody's downgraded Silicon Valley Bank's credit rating on long-term local currency bank deposits to "Caa2" from "A1" and its issuer rating to "C" from "Baa1".

In addition, Standard & Poor's Global, which is also a credit rating agency, also downgraded them to junk status earlier, and SVB is expected to enter bankruptcy proceedings.

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Due to market chaos caused by rising interest rates, customers suddenly withdraw deposits, causing Silicon Valley Bank to be unable to repay due debts, making it insolvent and triggering market panic. Now US regulators have taken over, closing down the bank and seizing its deposits.

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