The California Department of Financial Protection has joined the Federal Reserve in accepting some responsibility for the March 10 failure of Silicon Valley Bank.
While the regulator asserted in its report that SVB was slow to remediate regulator-identified deficiencies, it acknowledged that its examiners did not take adequate steps to ensure the bank quickly addressed problems.
The report also observed that SVB’s unusually rapid growth was insufficiently accounted for in risk assessments, specifically pointing to the bank’s high percentage of uninsured deposits.
The regulator said it plans to hire more staff to oversee banks with more than $50 billion in assets, along with those that have large deposit concentrations.
The report follows a similar debrief from the Fed that also accepted some responsibility for Silicon Valley Bank’s implosion.