The collapse of the Silicon Valley Bank (SVB) has grabbed international headlines. It is a regional bank based out of California and it was the sixteenth largest bank in the US before the crash.
The bank was a trendsetter as it was one of the early banks to focus on funding start-ups and venture capitalists. This segment formed a big part of its loan portfolio -- in December 2022, 56 per cent of its loans were to VCs and PEs secured by their limited partners.
A bank collapsing is never good news, and that always generates interest. But, SVB’s collapse is not about this alone. What’s going on here?
In this episode of ‘News Explained’, V Nivedita speaks to Hamsini Karthik, businessline’s Senior Assistant Editor, to understand the fall of the Silicon Valley Bank and how this Californian bank’s collapse could impact start-ups here in India.
Read the explainer on the bank’s failure here.
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