Asian SVB customers who lost deposits remain dependent on loans

(Reuters) – Silicon Valley Bank customers in Asia whose deposits were recently seized by the U.S. Federal Deposit Insurance Corp (FDIC) are under pressure to repay loans to First Citizens Bank, the Bank reported on Monday. Wall Street Journal.

According to the report, when SVB failed in March, the FDIC stepped in to protect all of the California bank’s US deposits and arranged the sale of the lender’s US customer accounts, branches and loans to First Citizens Bancshares.

SVB’s Cayman Islands branch, which held deposits from the bank’s customers in China, Singapore and other parts of Asia, including venture capital and private equity firms whose funds were domiciled on British Overseas Territory, the report says.

SVB, FDIC and First Citizens Bank did not immediately respond to a request for comment.

California regulators shuttered Silicon Valley Bank in March, and First Citizens BancShares bought the bank with help from the FDIC in a deal that drained $20 billion from a bank-backed insurance fund. banks and run by the government.

(Reporting by Tiyashi Datta in Bengaluru; Editing by Marguerita Choy)

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