Another US bank closed after Silicon Valley

Three days after the bankruptcy of Silicon Valley Bank, another US bank has closed. New York-based Signature Bank closed on Sunday in the third largest failure in US banking history. British news agency Reuters reported this news in a report.

Reuters reported that the US Federal Deposit Insurance Corporation (FDIC) has taken control of Signature Bank. The assets of this bank are 110.36 billion dollars. The bank had $88.6 billion in deposits at the end of the year.

Meanwhile, the FDIC has announced that banks will be given extra money to meet all the needs of depositors, including withdrawals.

"We are taking steps to strengthen our banking sector and increase the confidence of the common people," the company said in a statement.

“After the financial crisis of 2008, we took various measures, due to which our banking sector is now standing on a very strong footing. The monetary version of that time and the current action indicate our commitment to take necessary steps to ensure 'safety of savers' money'.

Meanwhile, Silicon Valley Bank was closed last Friday. At present, the bank's customers are stuck with billions of dollars. However, the US government has assured the customers that they will refund the money saved.

Silicon Valley Bank said Thursday it has sold some bonds at a loss to raise cash. In addition, the company announced the release of another 2 billion dollars of shares in the market to raise cash. After such an announcement panic was created among the customers of the bank. They started withdrawing money en masse. At one stage the bank collapsed.