Joint statement from the US Treasury, Fed and FDIC on SVB and Signature Bank:

The U.S. Treasury Department, the U.S. Federal Reserve (Fed), and the U.S. Federal Deposit Insurance Corporation (FDIC) announced the decisions taken on the protection of deposits following the bankruptcy of the Bank of Silicon Valley (SVB), and SVB customers will be able to access their deposits from Monday.

In a statement made by US Treasury Secretary Janet Yellen, Fed Chairman Jerome Powell and FDIC Chairman Martin Gruenberg, it was stated that decisive steps were taken to protect the US economy by strengthening the public’s trust in the banking system.

“This step will ensure that the U.S. banking system continues to fulfill its vital role in protecting deposits and providing households and businesses access to credit in a way that fosters strong and sustainable economic growth,” the statement said.

CONSULTED WITH BIDEN

In the statement, it was noted that US Treasury Secretary Yellen, after listening to the recommendations of the FDIC and the Fed and consulting with US President Joe Biden, approved the actions that will ensure the completion of the FDIC’s SVB decision in a way that fully protects all depositors.

“From Monday, March 13, depositors will have access to all of their funds,” the joint statement said. Any losses associated with the SVB decision will not be borne by taxpayers.” expression was used.

THERE IS A SIMILAR RISK FOR SIGNATURE BANK

In the statement, which was reported that New York-based Signature Bank also went bankrupt, it was stated that “We are announcing a similar systemic risk situation for Signature Bank, which was closed by the state authority.”

In the statement, which stated that all the depositors of this institution will be integrated, it was emphasized that the taxpayers will not bear any losses related to this bank, as in the SVB decision. The statement noted that shareholders and certain unsecured creditors will not be protected.

In the statement of the Treasury Department, the Fed and the FDIC, it was stated that the losses incurred by the FDIC in supporting uninsured depositors will be compensated by making a special assessment to the banks, as required by law.

ADDITIONAL FUND FROM FED

Pointing out that the Fed has also announced that it will provide additional financing to eligible depositors to help banks meet the needs of all depositors, the statement emphasized that the US banking system stands on a resilient and solid foundation, largely due to the reforms made after the financial crisis.

In the statement, it was noted that these reforms, along with the new steps taken, show the commitment to take the necessary steps to ensure that the savings of the depositors remain safe.

On the other hand, in another statement made by the Fed, it was stated that the additional financing to be provided to eligible depository institutions will strengthen the capacity of the banking system to protect deposits and allow the economy to be constantly provided with money and loans. “The Fed is ready to address any liquidity pressure that may arise,” the statement said.

In the statement, it was stated that the Bank Term Financing Program (BTFP) will be created for additional financing that will provide loans to deposit institutions for up to one year, and that the US Treasury Department will provide up to $ 25 billion from the Exchange Stabilization Fund to the program.

In the statement, Yellen’s approval of actions that will enable the FDIC to complement the SVB and Signature Bank decisions in a way that fully protects all depositors, both insured and uninsured, will reduce stress on the financial system, support financial stability and have the most impact on businesses, households, taxpayers and the economy in general. was emphasized to reduce (