NEW YORK, March 22, 2023--Citibank, N.A. said today it has raised its base lending rate to 8.00% from 7.75%, effective tomorrow, Thursday, March 23, 2023.
Even with recent turmoil, Founding Partner and Managing Director of venture capital firm Khosla Ventures Samir Kaul says SVB is "one of the safest banks to bank with." Kaul told Yahoo Finance's Rachelle Akuffo that Khosla Ventures recommends companies keep some of their money at SVB, citing to FDIC's move to ensure 100% of all deposits. The firm, alongside several other venture capitalists, originally came out in support of SVB almost two weeks ago, issuing a joint statement encouraging companies to stay with the bank "in the event that SVB were to be purchased and appropriately capitalized." Even though almost half of all VC-backed companies banked with SVB, Kaul says the startup ecosystem remains "as vibrant as ever." That being said, he added the effects from the bank's early March collapse could take another 3 to 6 months to fully shakeout. The lesson to be learned from SVB's collapse: diversity. Smaller, more regional banks that specialize in certain industries are crucial for the economy. The hope, Kaul says, is that banks catering specifically to startups and entrepreneurs will still be around in the wake of SVB. Smaller, more specialized banks are important because they truly understand the unique needs of their customers. The California wine industry had a knowledgeable partner with SVB, and there's now uncertainty among some winemakers on how to move forward. Moving forward, Kaul recommends keeping three months minimum liquidity at multiple institutions, "just in case the unthinkable happens." Whether it's regional or larger banks, it's important to keep asset holdings "diverse." Key Video Highlights: 00:00:07 SVB is "one of the safest banks to bank with" 00:00:27 Regional banks are "crucial" for economy 00:01:34 Always have 3 months liquidity in case "the unthinkable" happens For our full conversation with Samir Kaul, click here
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