Sources: Before the takeover of Signature Bank, it had lost about $17.8 billion of deposits, accounting for about 20%

According to reports, according to sources, the Crypto Friendly Bank, Signature Bank, had lost about 20% of its deposits, or about $17.8 billion, before being taken over. (Bloomberg)

Interpretation of this information:

The news of Signature Bank losing 20% of its deposits equating to $17.8 billion is not only a concerning fact for the institution itself but also for the cryptocurrency industry, which relies heavily on it. Signature Bank is known to be pro-crypto and has been catering to the cryptocurrency industry with its services. Hence this loss could impact the trust of the crypto community in banks that are friendly towards the industry.

It is unclear why the bank lost such a significant amount of deposits, but it might have been due to factors such as economic uncertainty or market fluctuation. However, it is worth noting that this loss happened before the bank got taken over, which could be viewed positively as it could signify that the new management would have a fresh start and an opportunity to rebuild and regain trust.

This news is also relevant for the broader financial industry, as the loss of deposits of a signatory bank could lead to the flight of deposits from other similar institutions. Furthermore, as the cryptocurrency industry continues to grow, more banks are expected to emerge that cater to its needs.

In summary, Signature Bank’s loss of 20% of its deposits before being taken over is alarming news, particularly for the cryptocurrency industry. However, this news could also lead to positive implications in the sense that the new management has an opportunity to regrow the bank’s reputation and gain trust back from depositors.