https://sputnikglobe.com/20230509/california-regulator-admits-underestimating-risk-of-svbs-unusually-rapid-growth-1110209141.html
California Regulator Admits Underestimating Risk of SVB's 'Unusually' Rapid Growth
California Regulator Admits Underestimating Risk of SVB's 'Unusually' Rapid Growth
Sputnik International
A California regulator in a self-review said it failed to adequately assess the risks of the unusually rapid rise of SVB before it collapsed, and vowed to look more closely at entities with over $50bln in assets.
2023-05-09T02:03+0000
2023-05-09T02:03+0000
2023-05-09T02:03+0000
economy
silicon valley bank
signature bank
silicon valley bank collapse
california
banking
banking sector
first republic bank
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SVB, the first of three major US banks to collapse within two months, saw deposits rise 220% since Q1 2020, far surpassing the industry average growth rate of 25%, according to a Capital Advisors Group analysis. The DFPI, the report added, will review internal processes and ensure additional staff are assigned for banks with assets above $50 billion in line with accelerated growth and increased risk profile.New York's Signature Bank failed two days after the SVB collapse and First Republic Bank of San Francisco had to be rescued last week. In a review of the US banking crisis published last month, the Federal Reserve took the rare step of conceding that it was a catalyst of the problem, including by failing to see SVB vulnerabilities before it was too late.
https://sputnikglobe.com/20230504/debt-ceiling-battle-and-federal-reserve-interest-hikes-could-wreck-us-economy-1110096898.html
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california regulator dfpi, california department of financial protection and innovation, new york's signature bank failure, svb collapse, first republic bank of san francisco collapse, us banking crisis, us economy
california regulator dfpi, california department of financial protection and innovation, new york's signature bank failure, svb collapse, first republic bank of san francisco collapse, us banking crisis, us economy
California Regulator Admits Underestimating Risk of SVB's 'Unusually' Rapid Growth
WASHINGTON (Sputnik) - A California regulator in a self-review said it failed to adequately assess the risks of the unusually rapid rise of Silicon Valley Bank (SVB) before the financial institution collapsed, and vowed to look more closely at entities with over $50 billion in assets.
SVB, the
first of
three major
US banks to collapse within two months, saw deposits rise 220% since Q1 2020, far surpassing the industry average growth rate of 25%, according to a Capital Advisors Group analysis.
"SVB’s unusually rapid growth was not sufficiently accounted for in risk assessments," the California Department of Financial Protection and Innovation (DFPI) said on Monday. "Although SVB had initiated remediation efforts, the regulators did not take adequate measures to ensure SVB did so with enough speed."
The DFPI, the report added, will review internal processes and ensure additional staff are assigned for banks with assets above $50 billion in line with accelerated growth and increased risk profile.
New York's Signature Bank failed two days after the SVB collapse and
First Republic Bank of San Francisco had to be rescued last week. In a review of the
US banking crisis published last month, the Federal Reserve took the rare step of conceding that it was a catalyst of the problem, including by failing to see SVB vulnerabilities before
it was too late.
