“I’m carefully monitoring the collapse of the American funding financial institution, Silicon Valley Financial institution, which has led to a significant disaster within the high-tech world,” tweeted the Prime Minister of Israel.

Additionally learn: Silicon Valley Financial institution collapse: Here is why it is not 2008 once more

Netanyahu stated that he is been in contact with senior Israeli tech figures following the collapse of Silicon Valley Financial institution in the US.

“If essential, out of duty to Israeli high-tech firms and workers, we’ll take steps to help the Israeli firms, whose middle of exercise is in Israel, to climate the cash-flow disaster that has been created for them because of the turmoil,” he tweeted.

In the meantime, Netanyahu stated that the Israeli economic system is powerful and steady, including “which finds expression on this disaster as properly.”

Netanyahu, who’s in Rome for an official go to, stated he would focus on the extent of the disaster together with his finance and economic system ministers and the central financial institution governor as soon as he returned house.

“From Rome I’ve held talks with senior high-tech figures in Israel. Upon my return to Israel I’ll focus on the scope of the disaster with the Finance and Financial system ministers and the Governor of the Financial institution of Israel,” tweeted Netanyahu.

Netanyahu assured Israeli tech firms banking with SVB that his authorities would assist affected Israeli companies overcome the liquidity disaster.

The SVB collapse has despatched ripples throughout the tech trade in the US, the UK and different international locations, together with Israel, the place the tech lender has branches.

US regulators on Friday (native time) shut down Silicon Valley Financial institution, as markets fretted over potential contagion from the most important banking failure for the reason that 2008 monetary disaster.

California regulators closed down the tech lender and put it underneath the management of the US Federal Deposit Insurance coverage Company (FDIC).

The FDIC is performing as a receiver, which usually means it’ll liquidate the financial institution’s belongings to pay again its clients, together with depositors and collectors.

Silicon Valley Financial institution collapsed after a surprising 48 hours wherein a financial institution run and a capital disaster led to the second-largest failure of a monetary establishment in US historical past.

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Silicon Valley Financial institution’s decline stems partly from the Federal Reserve’s aggressive rate of interest hikes over the previous yr.

After years of rates of interest hovering round zero, the central financial institution final spring started a collection of historic charge hikes to make borrowing for companies and people costlier — a approach to cool the economic system and produce inflation in line.

Silicon Valley Financial institution is the primary FDIC-insured establishment to fail this yr. The final FDIC-insured establishment to shut was Almena State Financial institution, Almena, Kansas, on October 23, 2020.