Silicon Valley Bank: Money in failed bank is safe, US government says - BBC

Bank shares in Asia and Europe have slumped, despite reassurances from the US president that America's financial system is safe following the collapse of two US lenders.

A string of smaller US banks suffered even worse losses than European counterparts, despite reassuring customers that they had more than enough liquidity to protect themselves from shocks.

The volatility has led to speculation that America's Federal Reserve will now pause its plans to keep raising interest rates, designed to tame inflation.

BBC North America Technology correspondent James Clayton spoke to people queuing up all day outside the SVB branch in Menlo Park, California, to access their funds.

Danni Hewson, head of financial analysis at the stockbrokers AJ Bell, said: "The first rush of relief has been replaced by niggling concerns that the era of high rates might be more difficult for some banks to stomach than had been previously thought.

US Federal Reserve chair Jerome Powell has gone to great lengths to signal the Fed's intention to raise interest rates.