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The US closes the second bank – Signature Bank

The US closed its second bank - Signature Bank - Photo 1.

A person stands outside Signature Bank in New York (USA) – Photo: REUTERS

Channel CNBC said the Bank Signature (Signature Bank) was closed on March 12. The move is said to be aimed at preventing the banking crisis from spreading.

Signature is commercial Bank was established in 2001, headquartered in New York City (USA).

As of December 31, 2022, Signature has total assets of 110.4 billion USD, and 88.6 billion USD of total deposits. This is considered the second largest virtual currency bank in the US next to Silvergate, having the strength to support businesses in the cryptocurrency industry.

In the joint announcement on the closure of Signature, the Ministry of Finance, Federal Reserve (Fed), and the US Federal Deposit Insurance Corporation (FDIC) said the decision was intended to prevent the contagion of the crisis following the collapse of SVB: “We also declared a similar systemic risk to the Bank. Signature, New York, has been closed by regulators today.”

The above agencies said depositors at Signature Bank will be guaranteed full access to their deposits and will receive their funds back.

In order to prevent damage and prevent a bigger crisis, the Fed and the Ministry of Finance have announced an emergency program to temporarily stop depositing money at Signature and SVB banks.

The FDIC Deposit Insurance Fund will be used to pay depositors. However, many of these will not be fully reimbursed due to the payout limit of only $250,000.

Signature’s closure marks the third largest collapse in US banking history after the case of SVB and Washington Mutual (2008). Signature is also the third financial institution to close in just a week, following SVB and Silvergate.

‘Seismic’ in Silicon Valley

On the morning of March 10 (US time), Silicon Valley Bank (SVB) officially stopped operating. This is the second major collapse of a financial institution in US history since 2008.

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