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Regulators close crypto-focused Signature Bank, citing systemic risk

BI Report || BusinessInsider

Published: 15:39, 13 March 2023  
Regulators close crypto-focused Signature Bank, citing systemic risk

Photo: Collected

Two days after the authorities shuttered Silicon Valley Bank in a collapse, US regulators on Sunday announced the closing the New York-based Signature Bank, a big lender in the crypto industry, in a bid to prevent the spreading banking crisis across the world.

“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority,” Treasury, Federal Reserve and FDIC said in a joint statement on Sunday evening, according to CNBC.

"Throughout the weekend, DFS Superintendent Adrienne Harris and I have been working closely with Federal partners on ways to stabilize the banking sector and protect the hard-earned money of New Yorkers whose livelihoods depend on impacted companies."

"I'm grateful that the Federal regulators have taken steps to do just that, and I hope that these actions will provide increased confidence in the stability of our banking system. Many depositors at these banks are small businesses, including those driving the innovation economy, and their success is a key to New York's robust economy," said a statement of Governor Kathy Hochul on the Signature Bank.