FDIC Establishes DINB for Silicon Valley Bank Depositors

WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) has taken decisive action in response to the closure of Silicon Valley Bank, Santa Clara, California. The bank was shuttered by the California Department of Financial Protection and Innovation today, with the FDIC appointed as receiver.

In a bid to safeguard insured depositors, the FDIC has established the Deposit Insurance National Bank of Santa Clara (DINB). All insured deposits of Silicon Valley Bank were immediately transferred to this new entity upon closing. Insured depositors are expected to have full access to their funds no later than Monday morning, March 13, 2023.

While uninsured depositors will receive an advance dividend within the next week, they will also be issued a receivership certificate for any remaining uninsured funds. The FDIC plans to make future dividend payments to these depositors as it sells the assets of Silicon Valley Bank.

Silicon Valley Bank, with 17 branches in California and Massachusetts, is the first FDIC-insured institution to fail this year. At the time of closure, the bank held approximately $209.0 billion in total assets and about $175.4 billion in total deposits. The amount of uninsured deposits will be determined once the FDIC gathers more information.

Customers with accounts exceeding $250,000 are advised to contact the FDIC toll-free at 1-866-799-0959 for further guidance. Loan customers should continue making their payments as usual. The DINB will reopen all branches of Silicon Valley Bank on Monday, March 13, maintaining normal business hours and resuming banking activities, including online services.

Under the Federal Deposit Insurance Act, the FDIC may create a DINB to ensure that customers retain access to their insured funds. This move reflects the agency’s commitment to providing stability in the wake of bank failures.