First Citizens Bank to buy SVB assets

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First Citizens Bank to buy SVB assets

The assets and loans of the collapsed US lender Silicon Valley Bank SVB are being bought by rival First Citizens BancShares.

The US Federal Deposit Insurance Corporation FDIC said all 17 former SVB branches will be open on Monday under the brand First Citizens.

SVB was taken over by US regulators earlier this month after a run on the bank.

It caused a sharp fall in bank shares around the world because of fears about the stability of other lenders.

Since then, Swiss banking giant Credit Suisse has had to be rescued after depositors started pulling their money out of the bank.

The FDIC said SVB customers should continue to use their current branch until they receive notice from First Citizens Bank that their account has been fully moved across.

First Citizens is based in Raleigh, North Carolina and calls itself America's biggest family-controlled bank. One of the biggest buyers of troubled banks in recent years has been it.

It bought about $72 billion of SVB's assets and loans at a discount of $16.5 billion. The FDIC will hold about 90 bn of SVB's assets.