Before the shutdown, Silicon Valley Bank was the nation's 16th largest lender. As the Federal Reserve raised interest rates, bond prices fell, which reduced the market value of Silicon Valley Bank's portfolio. Bloomberg News reported Silicon Valley Bank had "mark-to-market losses in excess of $15 billion at the end of 2022 for securities held to maturity." He stated that the Silicon Valley Bank had poor management of its Tier 1 capital, which was heavily concentrated in one asset, and had a narrow client base, comprising only tech companies in Silicon Valley. Silicon Valley Bank is the first FDIC-insured institution to fail this year.

Source: Forbes March 13, 2023 17:55 UTC