Etsy has warned sellers of delays in processing payments due to the collapse of Silicon Valley Bank (SVB).
The online marketplace, which relied on the bank to facilitate some of its seller payments, is now working with other payment partners to disburse funds.
“We wanted to let you know that there is a delay with your deposit that was scheduled for today,” Etsy said in an email.
“We know that you count on us to help run your business and we understand how important it is for you to receive your funds when you need them,” the email continued. “Please know that our teams are working hard to resolve this issue and send you your funds as quickly as possible.”
The news comes just days after the California Department of Financial Protection and Innovation took over SVB to protect its customers’ assets and named the Federal Deposit Insurance Corporation (FDIC) as the receiver. FDIC formed a separate entity that insured the deposits of SVB account holders for up to $250,000 each, available for access by Monday morning.
On Sunday, Treasury Secretary Janet Yellen said that the government would not be bailing out the troubled bank and shareholders would not be protected. However, any costs arising from protecting uninsured depositors will be recovered by conducting a special assessment of the bank.
The collapse of SVB has prompted other countries, including the U.K. and Canada, to take extraordinary measures in an effort to avert a potential banking crisis arising from fears of a broader financial upheaval.
In the U.K., the country’s treasury department and the Bank of England announced Monday morning that they had facilitated the sale of Silicon Valley Bank U.K. to HSBC, the largest bank in Europe, for a nominal sum of £1, securing £6.7 billion in deposits.
Meanwhile, in Canada, the Superintendent of Financial Institutions took over the bank’s assets over the weekend. While SVB did not have any commercial or individual deposits in Canada, it had lent $864 million worth of business loans, according to CBC.
Photo credit: Etsy