Response to SVB & Signature Bank Failures

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On March 10, the FDIC closed Silicon Valley Bank (SVB) – the 16th largest bank in the country at $211.8 billion in assets. On March 12,  Signature Bank, New York, New York, was closed by its state chartering authority. These closures mark the second and third largest bank failure since Washington Mutual in 2008.

Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC

This joint statement was released by the Department of the Treasury, Federal Reserve, and FDIC stating that the “U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.” The statement explains:

  • The FDIC is enabled to complete its resolution of SVB in a manner that fully protects all depositors. Depositors will have access to all of their money starting today, March 13. No losses associated with the resolution of SVB will be borne by the taxpayer.
  • A similar systemic risk exception was announced for Signature Bank, New York, New York, which was closed yesterday by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of SVB, no losses will be borne by the taxpayer.
  • Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed.
  • Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.

If you have customers with exposure to SVB, you can direct them to this link where there is a number to call.

Federal Reserve Bank Term Funding Program

The Federal Reserve Board announced it created the Bank Term Funding Program that will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.

Term Sheet: Bank Term Funding Program

FAQs as of 3/13: Bank Term Funding Program

You can find more details about this program as it becomes available on This website also provides contact information for your Federal Reserve Credit Risk Management team for any additional questions.

Webinar on 3/15:

1:00 p.m. ET – 2:15 p.m. ET: The Bank Term Funding Program – Overview and Important Program Details for Depository Institutions

Matthew Malloy, Section Chief, Monetary Policy Operations and Analysis, Monetary Affairs, Federal Reserve Board of Governors, and Kelley O’Mara, Senior Counsel, Legal Division, Federal Reserve Board of Governors, will lead an Ask the Fed® webinar providing an overview of the Bank Term Funding Program and address frequently asked questions that have arisen since the program’s launch.

Please click here to register.

You can email questions in advance of the session at Questions received in advance will receive priority. Webinar materials for this session, including a full recording of the webinar, including the Q&A portion, will be archived for future viewing.

Talking Points & Backgrounder

Download talking points and brief backgrounder to help respond to any questions on the role S.2155 played here.

You can view a full list of talking points from the American Bankers Association here.

Broader Talking Points on SVB/Signature Bank Situation

  • The banking system is strong and resilient.

  • As President Biden said, Americans should have confidence in the country’s banks.

  • The banking industry remains strong and a source of strength for our economy. The SVB and Signature Bank closures have unique risk factors not representative of the broader banking industry.

  • All customers who had deposits at these banks can rest assured that they are protected and will have access to their money as of today.

  • The actions taken by regulators mean that small businesses across the country with deposits at these banks can breathe easier knowing they can pay their workers and pay their bills.

  • The government actions also should provide confidence to depositors at all banks that their funds are safe.

FDIC Insurance Protects Bank Customers

  • Customers’ deposits are protected by FDIC insurance. In the 88-year history of the FDIC, no one has ever lost a penny of an insured deposit.  

  • Americans can have confidence that the banking system is safe. Your deposits will be there when you need them. 

  • The FDIC insures up to $250,000 in eight separate account categories per depositor per bank.

  • The FDIC is completely funded by the banking industry.  

    • Every bank pays risk-based premiums every quarter to support the fund.

    • The FDIC insurance fund and all of the agency’s costs come entirely from premiums paid by banks. The industry knows that a strong FDIC and deposit insurance fund are essential to the banking system. Banks stand ready to do whatever it takes to ensure the health of the fund and strength of the FDIC. The FDIC is stronger than ever before.  

    • The FDIC insurance fund stood at an all-time high of $124.5 billion as of June 2022.

    • The FDIC has a $100 billion line of credit with the U.S. Treasury, which would, by law, have to be repaid by the banking industry if ever used. The banking industry is well capitalized.  

    • In total, more than 99 percent of banks are “highly capitalized” and far above the most stringent regulatory standards.  

ABA Resource Webpages

ABA has created two webpages on to help educate bankers and their customers about these bank closures and the regulatory response. Among other things, the pages highlight the latest news, provide data emphasizing the overall strength and soundness of the banking system and provide links to related announcements from federal agencies, including information on FDIC insurance and the new Fed liquidity facility. Also featured are links to ABA training and other helpful resources for bankers to use, including ABA’s crisis communications guide.

Resources & Articles of Interest