IT Minister Ashwini Vaishnaw said that the Silicon Valley Bank resolution is ‘reassuring’ and will relieve companies amid the US administration's move to defend SVB depositors.

After a series of bank failures raised questions about the health of the US financial system, US President Joe Biden sought to reassure Americans this week that they can have faith that the US banking system is ‘secure’ and promised stronger bank regulation.

Federal regulators have taken action to support all deposits at Silicon Valley Bank.

Following Silicon Valley Bank's demise last week, many startups, tech firms, business owners, and VC funds felt uneasy and uneasy.

The 16th largest bank in the US, Silicon Valley Bank (SVB), situated in California, was shut down by the California Department of Financial Protection and Innovation last week. The FDIC was then named as the firm's receiver.

SVB was a major player in the tech startup movement and served as many successful firms' default bank; its rapid collapse was one of the biggest bank failures since the global financial crisis of 2008. The bank failed since customers started withdrawing their savings, sparking a run on the bank, many of whom were venture capital firms and VC-backed businesses that the bank had built up over time.

US Treasury Secretary Janet Yellen approved measures that will allow the Federal Deposit Insurance Corporation (FDIC) to finish its resolution of the Santa Clara, California-based Silicon Valley Bank (SVB) in a way that fully protects all depositors after hearing recommendations from the boards of the FDIC and the Federal Reserve and consulting with the president.

In a similar incident, the UK government revealed this week that it had allowed London-based banking giant HSBC to purchase the troubled Silicon Valley Bank's UK arm for one pound, protecting the deposits of more than 3,000 customers worth approximately 6.7 billion pounds.

The collapsed Silicon Valley Bank's depositors will be able to retrieve their money starting this week according to the Biden administration.