US' Signature Bank collapses

New York: New York-based Signature Bank was shut by regulators in the US, becoming the second bank in the country after Silicon Valley Bank (SVB) to have collapsed within a span of less than a week.

The Federal Deposit Insurance Corporation (FDIC) has been appointed as a receiver, which typically means it will liquidate the bank's assets to pay back its customers, including depositors, and others.

One of the most prominent lenders in the world of technology startups, the Silicon Valley Bank, which was struggling, collapsed on Friday, forcing the US Federal government to step in. The crisis-hit bank's shares tumbled over 60 per cent, data showed.

To protect depositors, the FDIC transferred all the deposits and substantially all of the assets of Signature Bank to Signature Bridge Bank, NA, a full-service bank that will be operated by the FDIC as it markets the institution to potential bidders, FDIC said in a statement.

A bridge bank is typically a chartered national bank that operates under a board appointed by the FDIC. It assumes the deposits and certain other liabilities and purchases certain assets of a failed bank.

Signature Bank had 40 branches across the country - New York, California, Connecticut, North Carolina, and Nevada.