The outflow of deposits from Silicon Valley Bank is faster than its process of raising funds through asset sales

ChainCatcher news, according to CNBC, the outflow of savings from Silicon Valley Bank is outpacing its process of raising funds through asset sales. According to previously announced terms, Silicon Valley Bank plans to sell $1.25 billion in common stock and an additional $500 million in convertible preferred stock. Silicon Valley Bank also announced an agreement with investment firm General Atlantic to sell $500 million in common stock, although this agreement will depend on the completion of another common stock issuance.

However, the outflow of savings from the group's subsidiary, Silicon Valley Bank, is outpacing its process of raising funds through asset sales. Rising interest rates, concerns about an economic recession, and a slowdown in the IPO process have made it more difficult for startups to raise additional cash, leading these companies to withdraw large amounts of their deposits from banks like Silicon Valley Bank. However, Wall Street analysts say that the issues at Silicon Valley Bank are unlikely to spread widely throughout the banking system. (Source link)