Will Silicon Valley’s acquisition of Bank put an end to worries in the midst of a banking crisis?

According to Iran Economist From the Reuters website, Bloomberg News had stated in a report that American officials are in the early stages of considering the expansion of emergency loan facilities in order to contain the worst banking shock since the global financial crisis in 2008; After this report, there was hope for more support from the banks.

The sudden collapse of Silicon Valley Bank (which provided services in the field of technology) earlier this month caused instability and drew investors’ attention to some of Europe’s biggest banks. Seeing signs that Silicon Valley’s bankruptcy is being compensated with official support is likely to inspire confidence.

The Federal Deposit Insurance Corporation (FDIC) announced in a statement that over the weekend, First Citizens Bancshares (an American banking and financial services company) bought all the loans and deposits of Silicon Valley Bank in exchange for the FDIC’s equity in the stock. He granted the value of 500 million dollars.

Officials at First Citizens, which is based in North Carolina, said customers still have access to their accounts and branches will reopen Monday.

The Federal Deposit Insurance Corporation estimates that the bankruptcy of Silicon Valley Bank will cost its deposit insurance fund nearly $20 billion.