Clearly no understanding at all by the above 2 posters.
Silicon Valley Bank (SVB) was a state-chartered commercial bank headquartered in Santa Clara, California.
The rest is the opinion of the 2 posters. Originally Posted by VitaMan
you shoulda kept reading the sacred wiki scrolls ...
A commercial bank is a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit.
It can also refer to a bank, or a division of a large bank, which deals with corporations or a large/middle-sized business to differentiate it from a retail bank and an investment bank. Commercial banks include private sector banks and public sector banks.
Operations in lead-up to collapse
Business model
The bank's customers were primarily businesses and people in the technology, life science, healthcare, private equity, venture capital and premium wine industries.[7][50][51] It was influential among startups in India, being unusually willing to serve C corporations whose founders lacked Social Security numbers.[52] Despite banking a high-tech sector, the bank was criticized for having old technology and lacking biometric authentication.[53]
In December 31, 2022, 56% of its loan portfolio were loans to venture capital firms and private equity firms, secured by their limited partner commitments and used to make investments in private companies, 14% of its loans were mortgages to high-net-worth individuals, and 24% of its loans were to technology and health care companies, including 9% of all loans which were to early and growth-stage startup companies.[26] Silicon Valley Bank required an exclusive relationship of those borrowing from the bank.[54] In February 2023, Forbes listed the bank as #20 of "America's Best Banks" with a 13.8% return on equity.[55][56] In March 2023, Moody's Investors Service rated the bank's loan portfolio as conservative and high-performing.[57] The bank's overseas subsidiaries held $13.9 billion in deposits.[58]
