Silicon Valley Bank, which specializes in serving high-flying technology start-ups and venture capital investors, has suffered a bank run causing its collapse on Friday.
This event, cited as the largest failure of a financial institution since the 2008 financial crisis, has caused some start-ups to scramble and fear layoffs or the pause of projects until they can access their funds.
Silicon Valley Bank, a financial institution serving technology start-ups and venture capital investors, experienced a bank run which led to its collapse on Friday.
The cause of the bank run was the US Federal Reserve's decision to raise interest rates, scaring away potential investors.
The effects of the failure were immediate, with some start-ups that had ties to the bank fearing layoffs or the pause of projects until they can access their funds.
Some sources, such as The Independent and AP, characterize this event as not being similar to the 2008 financial crisis.
However, The Gulf News did make a comparison to this crisis, citing the event as the largest financial institution failure since the Washington Mutual collapse of 2008.
While the effects of the collapse are still unfolding, it remains to be seen how it may or may not affect the wider banking system in the US and globally.