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Signature Bank in New York went under on Sunday. Other lenders also named Signature Bank are scrambling to let customers know they’re still open for business.

A woman leaves a branch of Signature Bank in New York, Monday, March 13, 2023.Signature Bank, New York, was shut down by regulators on Sunday.

Seth Wenig/Associated Press

  • Lenders named Signature Bank in various US states are clarifying they are not related to their failed New York namesake.
  • Signature Bank, New York was shut down by regulators on Sunday amid the banking crisis.
  • The SVC Bank in India also clarified it is not related to the failed Silicon Valley Bank, or SVB.

Lenders with names similar to two recently collapsed US banks are scrambling to reassure customers that they are not related to their failed financial institution namesakes.

At least four other banks named Signature Bank in various US states are clarifying that they are not associated with the crypto-friendly Signature Bank, New York which was shut down by regulators after there was a run on the deposits. The developments drove fear that the panic could also cause a run on other regional banks. 

On Sunday, Signature Bank Chicago tweeted that it isn’t affiliated with Signature Bank New York. “In light of today’s FDIC statement about a closure of a bank with a similar name to ours, Signature Bank Chicago is taking this opportunity to affirm that we are not affiliated with Signature Bank New York in any way,” it said.  

—Signature Bank (@SignatureBnkChi) March 13, 2023

It issued the clarification after an ABC News program on Sunday incorrectly used Signature Bank Chicago’s logo while referring to the issues plaguing Signature Bank, New York.

“There’s no affiliation between the two organizations and our Signature Bank is stronger than ever and has no cryptocurrency exposure,” Signature Bank Chicago tweeted in response to the mix-up. 

ABC News did not immediately respond to Insider’s request for comment sent outside regular business hours. The New York Times reported Monday that the network has corrected the error.

Meanwhile, the Signature Bank of Arkansas — a community bank — also distanced itself from the troubled New York lender of the same name, stating that it isn’t affiliated in any way with Signature Bank brands independently headquartered across the US, including in New York, Chicago, and Florida. 

“You may rest assured that your community bank, Signature Bank of Arkansas, is not associated or affiliated with a similarly named organization that you may see mentioned in the news,” it said.

It also posted a meme on Twitter to drive home its point.

—Signature Bank of Arkansas (@SignatureBank) March 13, 2023

 

Signature Bank, N.A. of Toledo, Ohio and the Signature Bank of Georgia  issued similar statements.

And it’s not just Signature Bank, or banks, in the US.

In India, the SVC Co-operative Bank issued a statement on Saturday to make clear that it is “completely unrelated to Silicon Valley Bank (SVB)” based in California.

“We request our members, customers, and other stakeholders not to pay attention to baseless rumors and mischief-mongering by unscrupulous elements insinuating similarities in brand names,” Mumbai-based SVC Bank added.

It went one step further and even threatened legal action against those “tarnishing its brand image.”

—SVC Bank (@SVC_Bank) March 11, 2023

The statement was also sent to its customers in both English and the local Marathi language, Reuters reported Monday. 

Read the original article on Business Insider
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