Clients of Signature Bank’s digital banking business have until April 5 to withdraw their funds and transfer them to another bank, or risk having their accounts closed by the US Federal Deposit Insurance Corporation (FDIC). New York Community Bancorp’s (NYCB) purchase of most of the bank’s deposits and loans did not include the digital banking business, which holds around $4bn in deposits.
The FDIC was appointed as the receiver of Signature Bank on March 12 when the bank was closed by New York regulators amid concern that it was experiencing a bank run and posed a “systemic risk” to the US economy. Depositors whose accounts are closed will receive a check by mail. Signature’s payments platform, Signet, which is powered by blockchain technology and allows for real-time payments with no transaction fees or limits, was also not included in the deal with NYCB. Its fate remains uncertain.
