First Published: 28 Mar 2023, 12:57 PM IST
What is a ‘bank run’ and how are depositors protected against it? Read here
Updated: 28 Mar 2023, 12:57 PM IST
SVB's downfall began when depositors started withdrawing their money from the bank quickly. To cover up the draining deposits, the bank sold off a large portion of its securities for a loss of about $1.8 billion. On March 08, the bank also announced that it was raising $2.25 billion through the sale of shares to meet the deposit outflow.