California regulators close Silicon Valley Bank after rapid deposit run

California regulators closed Silicon Valley Bank on 10 March 2023 and appointed the Federal Deposit Insurance Corporation as receiver. The failure came after the bank disclosed losses on securities, announced a capital raise and faced a rapid attempt by customers to withdraw deposits.

SVB had a concentrated client base in technology and venture capital and a high share of deposits above the standard insurance limit. Rising interest rates reduced the market value of long-duration securities purchased when rates were lower. Losses became acute when the bank needed liquidity to meet withdrawals.

Closure placed the institution into receivership; it did not mean insured deposits were lost. Federal authorities later invoked a systemic-risk exception to make all depositors whole, while shareholders and certain unsecured creditors were not protected in the same way. That later intervention was a distinct policy decision.

Regulatory reports examined interest-rate management, board oversight and supervisory failures. A bank run can involve self-reinforcing behaviour, but depositor action should not replace analysis of the balance sheet and management choices that created vulnerability.

The state order and FDIC record establish the failure date. This item distinguishes SVB from its former UK subsidiary and from similarly named entities. It records a specific bank closure that became a broader confidence shock, leaving later acquisitions and accountability findings to their own evidence.