JAKARTA. The United States of America government has reaffirmed that there were no options of bail-out for Silicon Valley Bank (SVB), which had just collapsed within 48 hours.

Said statement was given by Janet Yellen, Minister of Finance of the States, after joining the meeting last Friday (10/3). “During the financial crisis, there were many investors and owners of major banks that were bailed out. However, the reformation is on its way and right on track. We confirmed that there will be no more bail-outs,” she mentioned during an interview session at CBS.

For the record, SVB was officially dissolved last week, on March 10, 2023. This bank, which had been generous to start-ups and venture capital firms, recorded total assets of USD 209 million or equal to approximately IDR 3,228.1 trillion.

Previously, users and investors of SVB had reportedly withdrawn their money. Until last Thursday (9/3), the total capital withdrawn from SVB clocked up to USD 42 billion or equal to approximately IDR 648.69 trillion.

Meanwhile, according to the regulation of Federal Deposit Insurance Corporation (FDIC), the States will only be able to guarantee approximately USD 250 thousand or IDR 3.86 billion of the total users’ savings. FDIC said that 89% of SVB’s total deposits cannot be guaranteed as they came from business groups that have deposited money in large sums. (KR/ZH)