"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.