Silicon Valley Bank Collapse Led To ‘Major Crisis’ In Tech World, Closely Monitoring It: Israeli PM Netanyahu

Netanyahu, who is on an official visit to Rome, said he would discuss the extent of the crisis with his finance and economy ministers and the central bank governor once he returned home.

Israeli PM Netanyahu called Silicon Valley Bank collapse a 'major crisis' in tech world and said he is closely monitoring the situation. (Representational Image)

Source : Getty Images

Israel Prime Minister Benjamin Netanyahu warned of a deep crisis in the technology industry on Saturday following the implosion of Silicon Valley Bank, the second largest bank failure in the United States. "I am closely monitoring the collapse of the American investment bank, Silicon Valley Bank, which has led to a major crisis in the high-tech world," tweeted the Prime Minister of Israel.

The Israeli Prime Minister said that he has been in touch with senior Israeli tech figures after the collapse of Silicon Valley Bank in the US. 

"If necessary, out of responsibility to Israeli high-tech companies and employees, we will take steps to assist the Israeli companies, whose centre of activity is in Israel, to weather the cash-flow crisis that has been created for them due to the turmoil," he tweeted.

Meanwhile, he said the Israeli economy was stable and strong, adding “which finds expression in this crisis as well."

Netanyahu, who is on an official visit to Rome, said he would discuss the extent of the crisis with his finance and economy ministers and the central bank governor once he returned home.

"From Rome I have held talks with senior high-tech figures in Israel. Upon my return to Israel I will discuss the scope of the crisis with the Finance and Economy ministers and the Governor of the Bank of Israel," tweeted Netanyahu.

Netanyahu assured the Israeli technology companies banking with Silicon Valley Bank that his government would help affected Israeli businesses overcome the liquidity crisis. 

US regulators on Friday shutdown Silicon Valley Bank, as markets fretted over possible contagion from the biggest banking failure since the 2008 financial crisis, sending ripples across the tech industry in the United States, United Kingdom, and other countries including Israel.

Silicon Valley Bank collapsed after a stunning 48 hours in which a bank run and a capital crisis led to the second-largest failure of a financial institution in US history.

Silicon Valley Bank's decline stems partly from the Federal Reserve's aggressive interest rate hikes over the past year.