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The panic caused by the crash of Silicon Valley Bank (SVB) continued throughout the weekend.

Hedge fund tycoon Bill Ackman called on the US government to come up with a plan to stabilize market confidence before the opening of the Asian market on March 13, but US Treasury Secretary Janet Yellen explicitly ruled out the possibility of bailout in an interview on the morning of March 12th. 

This made the market even more nervous, and small and medium-sized banks across the United States seemed to face imminent risks.

On March 12th, another bank facing a liquidity crisis, Signature Bank, was taken over by New York state's Department of Financial Services. This is the third major bank collapse after Silvergate Bank and Silicon Valley Bank.

However, about half a day after Yellen’s statement, things took an unexpected turn.

At around 6 pm Eastern Time on March 12th, the US Department of Treasury, the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC) issued a joint statement stating that after consulting with the US President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank in a manner that fully protects all deposits. 

The Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. 

Has the crisis brought by the collapse of Silicon Valley Bank been controlled?

When reached by National Business Daily (NBD), Daniel Ives, managing director and senior equity analyst at Wedbush Securities, revealed that SVB did and was viewed as a key artery for the Silicon Valleytech ecosystem and played an integral role in the surge of successful tech startups for especially post dot.com bubble.

According to the investment firm, they were heard that private tech companies with lines of credit were required to consolidate their deposits with SVB. That created the risk of these companies not being able to access their deposits and make their payroll. But, with the Fed stepping in and saying that depositors will be able to access their money removes the biggest risk factor which had prompted a run on the bank last week, and hence the near-term impact of the SVB collapse should be minimal. 

With regard to the financing landscape for the tech field, the investment firm also mentioned to NBD that for tech startups ultimately with higher cash burns and a more uncertain environment on the horizon and most importantly SVB a debacle for the ages, the hurdle for bank loans and other forms of debt financing will be a different world going forward. With a tighter overall funding environment this will increase pressure on many start-ups to cut costs with a brighter spotlight on various credit lines for unproven tech startups with high cash burn from a banking sector post SVB collapse.