Silicon Valley Bank (SVB), U.S.'s 16th largest bank, was placed under FDIC's control in what was described as the largest U.S. bank failure since the global financial crisis in 2008.
Though SVB dealt with tech companies and VCs prominently, its collapse could also impact the real estate sector.
- According to the bank's 2022 financial report, 15% of the loans disbursed by it were secured by residential mortgages and commercial real estate.
- The bank had handed out $8.3B worth of loans to personal residential mortgages and $2.6B in commercial real estate loans.
- The Real Deal believes these loans will have to change hands as the FDIC will have to sell SVB's assets to pay out insured and uninsured depositors.
- SVB's collapse drove down the stock prices of other regional banks, such as First Republic Bank and Signature Bank, which are prominent commercial real estate lenders.
