Silicon Valley Bank (SVB) collapse is considered one of the most significant events in U.S. banking history. Founded in 1983, the bank became a favorite among tech startups, but in March 2023, it collapsed like a house of cards within just 48 hours.
SVB was established in Santa Clara, California, and primarily focused on providing banking services to technology companies, life sciences firms, and startups.
During the pandemic (2020–2022), a surge in the tech sector led to a massive increase in deposits, which nearly tripled. Before its failure, SVB was the 16th largest bank in the United States, holding around $210 billion in assets.
Today, SVB no longer exists as an independent bank, but its assets have been largely resolved. In March 2023, First Citizens Bank acquired approximately $72 billion in SVB’s assets along with all of its deposits. Former SVB branches now operate under the First Citizens name.
As of March 2026, SVB Financial Group, the bank’s former parent company, remains entangled in bankruptcy proceedings and legal disputes. Recently, a court rejected $944 million in claims related to its Cayman Islands branch.
In March 2026, U.S. regulators proposed easing certain banking rules to reduce pressure on regional banks, which had been tightened significantly after the SVB crisis.
SVB Financial Group shares are no longer listed on major exchanges and are now trading at very low prices in the over-the-counter (OTC) market.
Experts noted that the bank failed to properly manage the risk of rising interest rates and had invested heavily in long-term bonds, which ultimately contributed to its downfall.
Many critics also questioned the Federal Reserve and regulators for not identifying the bank’s vulnerabilities in time.
The collapse sparked intense political debate as well. Some leaders described it as a “bailout for wealthy tech elites” and raised concerns about whether the government would respond similarly if smaller banks serving ordinary citizens failed.
President Joe Biden and other officials called for accountability from SVB’s management and demanded clawbacks of executive bonuses.