The Federal Home Loan Banks provided over $13 billion in loans to Signature Bank and Silvergate

2023-01-22 09:45:51

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ChainCatcher news, according to The Wall Street Journal, the Federal Home Loan Bank system (FHLB) has provided over $13 billion in loans to the two largest cryptocurrency banks, Signature Bank and Silvergate, to mitigate the impact of a surge in withdrawals.

It is reported that the entity provided nearly $10 billion in loans to Signature Bank in the last quarter of 2022, making it one of the largest borrowing transactions in the banking industry in recent years. Additionally, Silvergate received at least $3.6 billion in loans from the FHLB.

Previous reports indicated that in the fourth quarter of 2022, Silvergate experienced a significant outflow of deposits and took measures to maintain cash liquidity, including selling debt securities, resulting in a net loss attributable to common shareholders of $1 billion during that period. (Source link)

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