Financial companies lost $465 billion of their capitalization due to the collapse of SVB

The market capitalization of financial companies from around the world in two days of trading after the bankruptcy of Silicon Valley Bank fell by $465 billion, reports Bloomberg. That is how much the total value of companies included in the MSCI World Financials and MSCI EM Financials indices fell.

On Tuesday, the value of financial companies continued to decline. At the end of the trading day in Asian markets, the MSCI Asia Pacific Financials index fell 2.7% to its lowest level since November 29, 2022. Thus, the Japanese Mitsubishi UFJ Financial Group immediately lost 8.3% in price, the South Korean Hana Financial Group – 4.7%, and the shares of the Australian ANZ Group fell 2.8%.

Silicon Valley Bank announced filed for bankruptcy on March 10. It is the 16th largest bank in the US that has been focused on startups. Its bankruptcy was the largest since the 2008 crisis and the second largest in US history after Washington Mutual Bank. SVB shareholders already filed a lawsuit about fraud against the parent company of the bank – SVB Financial Group.

Later also turned out to be closed due to the systemic risks of Signature Bank. US President Joe Biden promisedthat the management of bankrupt banks will be fired and held accountable, and supervisory and regulatory measures in relation to the banking sector will be tightened.

More about bankruptcy – in the material “Kommersant” “SVB pulled the markets”.

Kirill Sarkhanyants