An emergency closed-door meeting will be held by the Federal Reserve Board of Governors on March 13, 2023, under expedited procedures.
As per the statement released on March 12, the Board will review and determine the advance and discount rates to be charged by the Federal Reserve Banks during the meeting.
The sudden collapse and FDIC seizure of SVB Financial Group (SIVB) on Friday may have prompted the need for this expedited Fed meeting.
Based out of Santa Clara, SVB operates as a full-service bank that accepts deposits, makes loans as well as provides treasury management, banking across international borders, online banking, foreign exchange trade and multiple other services. This bank is known to serve customers across the world.
The SVB crisis originated after its parent organisation, the SVB Financial Group, announced a sale of $21 billion of its securities that were a part of its portfolio, along with which it mentioned that it held a sale of shares amounting to $2.25 billion to shore up its finances.
This move was prompted due to high deposit outflows at the bank caused by a downturn in the start-up industry. The bank also reported a decline in the net interest income.
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