Silicon Valley Bank's deposit outflows are outpacing its asset sales to raise cash

链捕手ChainCatcher · 2023-03-10T15:05:02.000Z

ChainCatcher news, according to CNBC, Silicon Valley Bank’s outflow of savings funds outpaced its process of selling assets to raise funds. Silicon Valley Bank plans to sell $1.25 billion in common stock and another $500 million in convertible preferred stock, under the terms of a previously announced plan. Silicon Valley Bank also announced an agreement with investment firm General Atlantic to sell $500 million in common stock, although the agreement will be contingent on the completion of another common stock offering. However, savings outflows from Silicon Valley Bank, a unit of the group, outpaced its efforts to raise funds from asset sales. Rising interest rates, fears of a recession and a slowdown in the initial public offering process have made it harder for early-stage companies to raise more cash, leading them to draw down their deposits with banks such as Silicon Valley Bank. But Wall Street analysts say it seems unlikely that Silicon Valley Bank's problems will spread broadly throughout the banking system. (Source link)

ChainCatcher reported that according to CNBC, the outflow of savings from Silicon Valley Bank is outpacing its progress in raising funds from asset sales. According to the terms of the previously announced plan, Silicon Valley Bank plans to sell $1.25 billion of common stock and another $500 million of convertible preferred stock. Silicon Valley Bank also announced an agreement with investment company General Atlantic to sell $500 million of common stock, but the agreement will depend on the completion of another common stock issuance.
However, the outflow of savings from the group's subsidiary Silicon Valley Bank is outpacing the process of raising funds from asset sales. Rising interest rates, concerns about a recession and a slowdown in initial public offerings have made it more difficult for start-ups to raise more cash, leading to these companies withdrawing a large amount of their deposits from banks such as Silicon Valley Bank. But Wall Street analysts said that Silicon Valley Bank's problems seemed unlikely to spread widely throughout the banking system. (Source link)