Quote:
Originally Posted by VitaMan
Clearly no understanding at all by the above 2 posters.
Silicon Valley Bank (SVB) was a state-chartered commercial bank headquartered in Santa Clara, California.
The rest is the opinion of the 2 posters.
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you shoulda kept reading the sacred wiki scrolls ...
A
commercial bank is a
financial institution which accepts
deposits from the public and gives
loans for the purposes of consumption and
investment to make
profit.
It can also refer to a
bank, or a division of a large bank, which deals with corporations or a large/middle-sized business to differentiate it from a
retail bank and an
investment bank.
Commercial banks include private sector banks and
public sector banks.
Operations in lead-up to collapse
Business model
The bank's customers were primarily businesses and people in the technology,
life science,
healthcare,
private equity,
venture capital and premium
wine industries.
[7][50][51] It was influential among startups in India, being unusually willing to serve
C corporations whose founders lacked
Social Security numbers.
[52] Despite banking a high-tech sector, the bank was criticized for having old technology and lacking
biometric authentication.
[53]
In December 31, 2022, 56% of its loan portfolio were loans to venture capital firms and private equity firms, secured by their limited partner commitments and used to make investments in private companies, 14% of its loans were mortgages to
high-net-worth individuals, and 24% of its loans were to technology and health care companies, including 9% of all loans which were to early and growth-stage startup companies.
[26] Silicon Valley Bank required an exclusive relationship of those borrowing from the bank.
[54] In February 2023,
Forbes listed the bank as #20 of "America's Best Banks" with a 13.8%
return on equity.
[55][56] In March 2023,
Moody's Investors Service rated the bank's loan portfolio as conservative and high-performing.
[57] The bank's overseas subsidiaries held $13.9 billion in deposits.
[58]
