The US government has announced plans to protect the deposits of citizens who deposit their money at Silicon Valley Bank (SVB) and Signature Bank. The announcement confirms that people who deposit at both banks have access to their deposits in full, with effect from Monday, 13 March onwards.
In response to the impact of the SVB bankruptcy, the Federal Reserve (Fed) has established a “Bank Term Funding Program.” The program aims to protect financial institutions by offering one-year loans to commercial banks, depository institutions, credit unions, and other types of financial institutions.
Dow Jones futures rose more than 300 points early this morning in response to these measures. The US Treasury Department and the Fed announced deposit protection measures aimed at mitigating the panic caused by the SVB bankruptcy.
Investors are keeping a close eye on US economic data this week, which includes the February Consumer Price Index (CPI), February Producer Price Index (PPI), February retail sales, weekly jobless claims, start-up numbers for homes and construction permits, February industrial production, and the preliminary consumer sentiment index for March from the University of Michigan.
The SVB bankruptcy has triggered concerns among investors, and market analysts predict that the measures announced by the US government and the Fed will help mitigate the impact of the bankruptcy on financial institutions. The global economic impact of the bankruptcy remains uncertain, and investors are closely watching the unfolding situation.