Review of DFPI Oversight and Regulation of Silicon Valley Bank

Review of DFPI’s Oversight and Regulation of Silicon Valley Bank (PDF)

Updated May 9, 2023, 12:30 p.m. Includes corrected typographical errors and an updated glossary.

This report provides background on the regulatory framework that governs banks in California and the United States, summarizes DFPI’s supervision of Silicon Valley Bank (SVB), reviews the circumstances that led to the failure of SVB, and details key takeaways and next steps for DFPI.

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Press Release: California DFPI Announces Results from Review of the Supervision and Closure of Silicon Valley Bank

Silicon Valley Bank Review – Supervisory Materials

The DFPI is required to secure approval from the Federal Reserve Board to release Confidential Supervisory Information (CSI) for banks under joint supervision. The Federal Reserve Board has released documents in connection with the review of the supervision and regulation of SVB and Silicon Valley Bank Financial Group (SVBFG) that would ordinarily be confidential. Due to the exceptional nature of these events, including the liquidation of SVB by DFPI, and the extraordinary response required by the DFPI and the Federal Reserve, the regulators determined that release of this information is appropriate, as the substantial public interest outweighs the need to maintain the information’s confidentiality.

Supervisory Letters

1. SVBFG Target Corporate Governance/Global Risk Management Supervisory Letter, November 19, 2019 (PDF)
2. SVB 2021 Asset Quality and Credit Risk Management Target Supervisory Letter, August 17, 2021 (PDF)
3. SVBFG Liquidity Planning Target Supervisory Letter, November 2, 2021 (PDF)
4. SVBFG Capital Planning Target Supervisory Letter, November 9, 2021 (PDF)
5. SVBFG and SVB Governance and Risk Management Target Supervisory Letter, May 31, 2022 (PDF)
6. SVBFG 2022 Large and Foreign Banking Organization (LFBO) Horizontal Capital Review Supervisory Letter, August 19, 2022 (PDF)
7. SVBFG 2023 LFBO Horizontal Liquidity Review Entry Letter, November 17, 2022 (PDF)
8. SVBFG and SVB Internal Audit Target Supervisory Letter, December 27, 2022 (PDF)

Holding Company Reports of Inspection and Ratings Letters

1. SVBFG 2016 Report of Holding Company Inspection, June 14, 2017 (PDF)
2. SVBFG 2017 Report of Holding Company Inspection, June 13, 2018 (PDF)
3. SVBFG 2018 Report of Holding Company Inspection, April 11, 2019 (PDF)
4. SVBFG 2019 Report of Holding Company Inspection, May 8, 2020 (PDF)
5. SVBFG 2020 Report of Holding Company Inspection, July 9, 2021 (PDF)
6. SVBFG and SVB 2021 Supervisory Ratings Letter, August 17, 2022 (PDF)
7. SVBFG 2022 LFBO Dynamic Rating Roll-up Letter – Large Financial Institution (LFI) Capital, October 11, 2022 (PDF)

Capital, Asset Quality, Management, Earnings, Liquidity, and Sensitivity to Market Risk (CAMELS) Reports

1. SVB 2016 CAMELS Examination Report, March 7, 2017 (PDF)
2. SVB 2017 CAMELS Examination Report, February 14, 2018 (PDF)
3. SVB 2018 CAMELS Examination Report, March 6, 2019 (PDF)
4. SVB 2019 CAMELS Examination Report, April 13, 2020 (PDF)
5. SVB 2020 CAMELS Examination Report, May 3, 2021 (PDF)
6. SVB 2022 CAMELS Examination Supervisory Letter, November 15, 2022 (PDF)

Memorandum of Understanding

1. Memorandum of Understanding (Draft), March 10, 2023 (PDF)

DFPI Orders (non-CSI)

1. Order Taking Possession of Property and Business of SVB (PDF)
2. Order of Liquidation of SVB (PDF)
3. Appointment and Tender of Appointment of FDIC as Receiver (PDF)