The Federal Reserve Board of Governors will hold an emergency closed-door meeting on March 13, 2023, following expedited procedures.
The Board will review and determine the advance and discount rates to be charged by the Federal Reserve Banks during the meeting, according to a statement issued on March 12, 2023.
The unexpected failure and FDIC seizure of SVB Financial Group (SIVB) on Friday may have necessitated this hurried Fed meeting.
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SVB, a full-service bank based in Santa Clara, takes deposits, makes loans, and offers treasury management, international banking, online banking, foreign exchange trading, and numerous other services. Customers from all over the globe have been known to use this bank.
The SVB problem began when its parent company, the SVB Financial Group, declared the sale of $21 billion in securities from its portfolio, as well as a $2.25 billion share sale to shore up its finances.
This move was spurred by high deposit outflows at the bank as a result of a downturn in the start-up industry. The bank also recorded a decrease in net interest income.
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