SVB collapse prompted 'concerns of contagion' in tech industry: Israel's PM Netanyahu
2 min read . Updated: 12 Mar 2023, 04:23 PM IST
Premium- Israel's PM informed that he is been in touch with senior Israeli tech figures following the collapse of SVB.
Israeli Prime Minister Benjamin Netanyahu expressed concerns on Saturday about the significant impact of Silicon Valley Bank's (SVB) collapse, which is the second-largest bank failure in US history, on the technology industry.
"I am closely monitoring the collapse of the American investment bank, Silicon Valley Bank, which has led to a major crisis in the high-tech world," Netanyahu tweeted.
Israel's PM informed that he is been in touch with senior Israeli tech figures following the collapse of SVB.
"If necessary, out of responsibility to Israeli high-tech companies and employees, we will take steps to assist the Israeli companies, whose center of activity is in Israel, to weather the cash-flow crisis that has been created for them due to the turmoil," Netanyahu added.
While on an official visit to Rome, Prime Minister Benjamin Netanyahu stated that he plans to discuss the extent of the crisis created by the collapse of Silicon Valley Bank (SVB) with his finance and economy ministers and the central bank governor upon his return to Israel.
"From Rome, I have held talks with senior high-tech figures in Israel. Upon my return to Israel, I will discuss the scope of the crisis with the Finance and Economy ministers and the Governor of the Bank of Israel," tweeted Netanyahu.
Netanyahu said that the Israeli economy is strong and stable, adding "which finds expression in this crisis as well."
Israeli PM gave assurance to Israeli tech companies who are banking with SVB that the government would provide assistance to help them overcome the liquidity crisis.
The collapse of Silicon Valley Bank (SVB) has had an impact on the technology industry not only in the United States and the United Kingdom but also in other countries where SVB has branches, such as Israel.
Silicon Valley Bank was shut down by US regulators on Friday, raising concerns of contagion in the markets due to it being the largest banking failure since the 2008 financial crisis. The tech lender was closed by California regulators and put under the supervision of the US Federal Deposit Insurance Corporation (FDIC).
Silicon Valley Bank's collapse has been attributed to a bank run and capital crisis that occurred within 48 hours, leading to the second-largest failure of a financial institution in US history. The decline of the tech lender is believed to be partly caused by the Federal Reserve's aggressive interest rate hikes over the past year.