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<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/did-svbs-collapse-spark-bank-withdrawals" data-wpel-link="internal" rel="noopener noreferrer nofollow">Did SVB’s Collapse Spark Bank Withdrawals?</a><br></p>
<p style="text-align: justify">The sudden downfall of Silicon Valley Bank (SVB) has triggered a wave of withdrawals from numerous banks in the United States. A report by the New York Federal Reserve revealed that customers acted quickly, resulting in significant cash outflows from 22 banks, which ultimately undermined customer confidence in the banking system.</p>
<h2 id="what-dates-experienced-major-withdrawals">What Dates Experienced Major Withdrawals?</h2>
<p style="text-align: justify">March 10 and March 13, 2023, marked critical days when substantial amounts of cash were withdrawn from various banks. The report indicates that certain banks saw a staggering decline of up to 10% in their assets within a 24-hour period, primarily driven by larger corporate clients.</p>
<h2 id="what-actions-did-banks-take-to-respond">What Actions Did Banks Take to Respond?</h2>
<p style="text-align: justify">In response to the crisis, these banks quickly turned to borrowing to manage the unexpected cash outflows. They utilized resources such as the Federal Reserve’s discount window and the Bank Term Funding Program without liquidating their securities. Additionally, some institutions elevated their interest rates to draw back customers.</p>
<p style="text-align: justify">The swift actions taken by banks helped them recover lost deposits by mid-2023, although this led to increased interest costs. The report emphasized that a significant asset exodus occurred especially on March 10 from larger banks, those with assets surpassing $250 billion.</p>
<p style="text-align: justify">Key takeaways from these events include:</p>
<ul>
 <li>The rapid reaction of banks was vital to maintaining market stability.</li>
 <li>Corporate clients were the main contributors to the withdrawal surge.</li>
 <li>Increased borrowing measures were implemented to counterbalance the outflows.</li>
 <li>Higher interest rates were introduced as an effort to regain customer trust.</li>
</ul>
<p style="text-align: justify">The incident surrounding SVB’s collapse and the resulting mass withdrawals highlight the critical nature of financial institutions’ responses during crises, ultimately shaping the resilience of the banking sector.</p>
<h5><span style="font-weight:bold;font-size:16px">Continue Reading: </span> <a href="https://en.bitcoinhaber.net/did-svbs-collapse-spark-bank-withdrawals" data-wpel-link="internal" rel="noopener noreferrer nofollow">Did SVB’s Collapse Spark Bank Withdrawals?</a></h5>

Did SVB’s Collapse Spark Bank Withdrawals?

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