Netanyahu said Israel’s economy is strong and stable.
Tel Aviv:
Israeli Prime Minister Benjamin Netanyahu warned on Saturday that the implosion of Silicon Valley Bank (SVB), the second biggest bank failure in US history, has triggered a deep crisis in the technology industry.
Israel’s prime minister tweeted, “I am closely monitoring the collapse of the US investment bank, Silicon Valley Bank, which has caused a major crisis in the high-tech world.”
Netanyahu said he has been in contact with senior Israeli tech figures since the collapse of Silicon Valley Bank in the United States.
“If necessary, out of responsibility to Israeli high-tech companies and employees, we will take steps to assist Israeli companies, whose center of activity is in Israel, to cope with the cash-flow crisis that has created for them There is turmoil,” he tweeted.
Meanwhile, Netanyahu said Israel’s economy is strong and stable, “which finds expression even in this crisis.”
Netanyahu, who is in Rome for an official visit, said he would discuss the extent of the crisis with his finance and economy ministers and the central bank governor after returning home.
Netanyahu tweeted, “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.”
Netanyahu assured Israeli tech companies banking with SVB that his government would help affected Israeli businesses overcome the liquidity crisis.
The collapse of SVB has sent ripples across the tech industry, including the United States, the United Kingdom and Israel, among other countries where the tech lender has branches.
US regulators shut down the Silicon Valley bank on Friday (local time), as markets jittered over a possible contagion from the biggest banking failure since the 2008 financial crisis.
California regulators shut down the tech lender and placed it under the control of the US Federal Deposit Insurance Corporation (FDIC).
The FDIC is acting as a receiver, which usually means it will liquidate a bank’s assets to pay back its customers, including depositors and creditors.
The Silicon Valley bank collapsed after an astonishing 48 hours, with a bank run and capital crunch resulting in the second largest failure of a financial institution in US history.
The Silicon Valley bank’s decline stemmed partly from the Federal Reserve’s aggressive interest rate hikes over the past year.
After interest rates hovered near zero for years, the central bank launched a series of historic rate hikes last spring to make borrowing more expensive for businesses and individuals — in a bid to calm the economy and tame inflation. a way to bring
The Silicon Valley bank is the first FDIC-insured institution to fail this year. The last FDIC-insured institution to close was Alamena State Bank, Alamena, Kansas, on October 23, 2020.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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