Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Sources from Mehr News Agency: The Americans have requested, through intermediaries from various countries, the continuation of negotiations with Iran
Mehr News Agency, citing sources: The Iranian Foreign Ministry is considering a US request to continue negotiations after they failed to halt Iran's nuclear capabilities
Al Mayadeen's correspondent: Five martyrs and several wounded after the occupation targeted a group of civilians in Al-Rimal neighborhood, west of Gaza City
Hamas: The comprehensive failure, military, political, and moral, exposes the falsehoods of the Zionist propaganda machine and reaffirms that our struggle is one of willpower and steadfastness
Hamas: Hamas: The slogans of "crushing defeat" and "total eradication" of the movement have collapsed in the face of explosive tunnels and the Resistance’s ambushes
Hamas: 640 days into the aggression, the occupation has utterly failed to break Gaza’s will or subdue its resistance
Iranian FM spokesperson denies Trump’s claims about Iran requesting a meeting with the US: We have made no such request to the American side
OHCHR: We have concerns that Nasser's arrest is part of efforts to eliminate legitimate forms of Palestinian expression
Al Mayadeen's correspondent: Six killed or injured in Israeli drone strike on displaced persons’ tents in Sanabel camp, al-Mawasi, west of Khan Younis
Al Mayadeen's correspondent in Gaza: Several injuries reported as a result of the drone strike on the displaced persons' tent in the Al-Mawasi area, west of Khan Yunis

SVB collapse hits ‘Israel’, Gulf hard, US banking faltering

  • By Al Mayadeen English
  • Source: Agencies
  • 13 Mar 2023 20:01
  • 4 Shares
5 Min Read

Silicon Valley Bank's collapse sounds the alarm in the Israeli tech sector and Middle Eastern stock indices.

  • x
  • SVB collapse hits ‘Israel’, Gulf hard, US banking faltering
    The main entrance of Silicon Valley Bank (SVB) in Menlo Park, California, March 10, 2023 (Reuters)

"Israel" and several Gulf states are already feeling the effects of Silicon Valley Bank's collapse on Friday, Al-Monitor reported.

California-based Silicon Valley Bank was closed on Friday. The bank was put under "receivership" by the Federal Deposit Insurance Corporation of the US government, a procedure wherein regulators take over a company's assets to aid creditors in recovering money in default.

The decision was made after Silicon Valley Bank (SVB), the US' 16th-largest bank, encountered major financial difficulties, which started as a result of the US Federal Reserve's aggressive recent interest rate hikes to combat inflation. When borrowing costs increased, investors, especially those in Silicon Valley tech firms, grew increasingly unwilling to take risks.

Startups, which make up the majority of Silicon Valley Bank's customers, started withdrawing money last week, depleting the bank's capital and sparking an all-out bank run. By the end of Thursday, customers had taken out an astounding $42 billion. The bank even looked for a buyer on Friday but failed to find one.

Read more: Canadian authorities temporarily control Canadian branch of SVB

"Israel" affected by SVB collapse

It is noteworthy that the bank served numerous Israeli businesses, and its collapse has caused alarm in the Israeli tech sector, according to Al-Monitor.

The Times of "Israel" reported that Israeli banks Bank Leumi and Bank Hapoalim sought to assist corporations in transferring cash out of the SVB prior to its collapse, with Bank Hapoalim reportedly assisting Israeli clients in bringing $1 billion to "Israel".

Israeli occupation Prime Minister Benjamin Netanyahu had also reassured Israeli clients of SVB, particularly tech firms, that the occupation government will provide assistance to affected Israeli businesses, as per his office.

In the same context, market statistics indicated that some Middle Eastern stock indices dipped marginally on Monday as a result of the SVB collapse, Al-Monitor highlighted.

Bloomberg reported on Sunday that the Royal Group investment group, headed by UAE National Security Adviser Prince Tahnoon bin Zayed Al Nahyan, contemplated acquiring Silicon Valley Bank's British arm. However, according to the BBC, the British bank HSBC eventually made the purchase on Monday.

Moreover, most stock markets in the Gulf ended lower on Monday, extending losses from the previous session as the collapse of SVB raised fears of a fresh financial crisis, Reuters reported.

According to Fadi Reyad, Chief Market Analyst at CAPEX.com, the failures in the US banking sector continue to weigh on GCC stock markets and add to the uncertainties around US monetary policy.

Related News

Tehran weighs US request for renewed nuclear talks: Report

Fatal Texas floods could cost up to $22 bln, AccuWeather estimates

"Energy price movements remain under observation as well and could add to the pressures," he said.

Saudi Arabia's benchmark index (.TASI) dropped 0.8%, weighed down by a 1.5% fall in Al Rajhi Bank (1120.SE) and a 0.8% decrease in Retal Urban Development Co (4322.SE).

In the kingdom, all banking shares were in red including Arab National Bank (1080.SE), which was down 5.9%.

Dubai's main share index (.DFMGI) closed 0.9% lower, with blue-chip developer Emaar Properties (EMAR.DU) retreating 2.9%.

In Abu Dhabi, the index (.FTFADGI) was down 1.6%.

Oil prices - a key catalyst for the Gulf's financial markets - fell $4 as the collapse of Silicon Valley Bank weighed, but a recovery in Chinese demand provided support.

Elsewhere, the benchmark Qatar index (.QSI) declined 1.5%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) slid 3.1%, dragged down by a 3.9% tumble in top lender Commercial International Bank (COMI.CA).

US banking system faltering

The bankruptcy of Silicon Valley Bank raises fears that the United States may face another financial crisis similar to the one that occurred in 2008. It is noteworthy that Signature Bank in New York also shuttered its doors on Sunday.

San Francisco-based First Republic has been able to meet withdrawal demands with the help of additional funding from JPMorgan Chase & Co, the mid-cap lender's executive chair, Jim Herbert, told CNBC.

Herbert's comments, however, did little to stymie losses in the stock, which was last down 67% at $28.05 amid multiple trading halts.

Other regional lenders also tumbled, with Western Alliance (WAL.N), KeyCorp (KEY.N), Comerica Inc (CMA.N), Huntington Bancshares Inc (HBAN.O), and PacWest Bancorp (PACW.O) down between 16% and 29%, triggering multiple trading halts for volatility, as reported by Reuters.

The KBW regional banking index (.KRX) slipped 5.4%, and the S&P 500 banking index (.SPXBK) fell 6%.

"The real issue for the industry is that there is a crisis of confidence in the stickiness of deposits and when that becomes dislocated, things can move very quickly," said Christopher McGratty, head of US Bank Research at investment bank KBW.

Read more: Musk 'open to the idea' of buying SVB, turning it into digital bank

  • United States
  • Israel
  • US
  • Gulf
  • Silicon Valley bank
  • SVB

Most Read

Syria demands 1/3 of Golan, Lebanese areas for 'Israel' peace deal

Syria demands 1/3 of Golan, Lebanese areas for 'Israel' normalization

  • MENA
  • 4 Jul 2025
Major ambush in Gaza kills 6 Israeli troops, injures dozens

Major ambush in Gaza kills 5 Israeli troops, injures 14

  • Politics
  • Today
Al-Qassam hits IOF groupings in Khan Younis; ‘tough incident’ reported

3 Israeli soldiers killed by Resistance gunfire in south, north Gaza

  • Palestine
  • 4 Jul 2025
Concrete and rubble fall from a heavily damaged building as Israeli soldiers search for survivors in a residential area hit by a missile fired from Iran, near Tel Aviv, occupied Palestine, Sunday, June 15, 2025 (AP)

'Israel' concealed damage inflicted by Iran in war, report finds

  • Politics
  • 5 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Big beautiful bill's ugly reality for American healthcare
US & Canada

'Big beautiful bill's' ugly reality for American healthcare

Ukrainian Forces struggle to hold Eastern front lines: NYT
Europe

Ukrainian forces struggle to hold eastern frontlines: NYT

Plan proposes transit camps for Gazans ahead of possible relocation
US & Canada

GHF proposed 'transit areas' plan prior to Gaza residents 'relocation'

Lavrov: IAEA will be held accountable for pre-strike Iran assessments
Europe

IAEA to be held accountable for pre-strike Iran assessments: Lavrov

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS