Silicon Valley

Silicon Valley is a nickname for the southern portion of the San Francisco Bay Area, which is located in part of the U.S. state of California known as Northern California. It is home to many of the world's largest high-tech corporations, as well as thousands of startup companies. Geographically, it encompasses all of the Santa Clara Valley, the southern half of the San Francisco Peninsula, and southern portions of the East Bay. It includes parts or most of Santa Clara County, San Mateo County, and Alameda County.

The word "valley" refers to the Santa Clara Valley, where the region has traditionally been centered, which includes the city of San Jose and surrounding cities and towns. The word "silicon" originally referred to the large number of silicon chip innovators and manufacturers in the region. The term "Silicon Valley" eventually came to refer to all high tech businesses in the area, and is now generally used as a synecdoche for the American high-technology economic sector. It also became a global synonym for leading high-tech research and enterprises, and thus inspired similar named locations, as well as research parks and technology centers with a comparable structure all around the world.

Silicon Valley Bank

Silicon Valley Bank (NASDAQ: SIVB) is a U.S.-based high-tech commercial bank with offices in a number of other countries. The bank has helped fund more than 30,000 start-ups.SVB Financial is the holding company for the bank.

Operations

The company focuses on lending to technology companies, providing multiple services to venture capital and private equity firms that invest in technology and biotechnology, and also on private banking services for high-net-worth individuals, in its home market in Silicon Valley. In addition to taking deposits and making loans, the bank operates venture capital and private equity divisions that sometimes invest in the firm's commercial banking clients.

By June 2009, the bank was third in market share in the San Jose, California area, with deposits in the region of $7.1 billion, an 8.11% share of the market. A year earlier it was ranked No. 7, with $4.5 billion in deposit, a 5.67% share.

As of October 2011, the bank had more than 1,400 employees. As September 2012, it had offices in the United Kingdom, Israel, China and India, plus more than 20 offices in the United States, and $21.6 billion in total assets.

Valley

A valley is a low area between hills, often with a river running through it.

In geology, a valley or dale is a depression that is longer than it is wide. The terms U-shaped and V-shaped are descriptive terms of geography to characterize the form of valleys. Most valleys belong to one of these two main types or a mixture of them, (at least) with respect to the cross section of the slopes or hillsides.

Valley terminology

A valley in its broadest geographic sense is also known as a dale. A valley through which a river runs may also be referred to as a vale. A small, secluded, and often wooded valley is known as a dell or in Scotland as a glen. A wide, flat valley through which a river runs is known in Scotland as a strath. A mountain cove is a small valley, closed at one or both ends, in the central or southern Appalachian Mountains which sometimes results from the erosion of a geologic window. A small valley surrounded by mountains or ridges is sometimes known as a hollow. A deep, narrow valley is known as a cwm (also spelled combe or coombe). Similar geological structures, such as canyons, ravines, gorges, gullies, and kloofs, are not usually referred to as valleys. See also: "chine". A valley formed by erosion is called an erosional valley; a valley formed by geologic events such as drop faults or the rise of highlands is called a structural valley.

Bank

A bank is a financial institution that creates credit by lending money to a borrower, thereby creating a corresponding deposit on the bank's balance sheet. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial system and influence on national economies, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.

Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had their roots in the ancient world. In the history of banking, a number of banking dynasties — notably, the Medicis, the Fuggers, the Welsers, the Berenbergs and the Rothschilds — have played a central role over many centuries. The oldest existing retail bank is Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank.

Commercial bank

A Commercial bank is a type of Bank / Financial Institution that provides services such as accepting deposits, making business loans, and offering basic investment products.

"Commercial bank" can also refer to a bank, or a division of a large bank, which more specifically deals with deposit and loan services provided to corporations or large/middle-sized business - as opposed to individual members of the public/small business - Retail banking, or Merchant banks.

Origin of the term

The name bank derives from the Italian word banco "desk/bench", used during the Renaissance era by Florentine bankers, who used to carry out their transactions on a desk covered by a green tablecloth. However, traces of banking activity can be found even in ancient times.

In the United States the term "commercial bank" was often used to distinguish it from an investment bank due to differences in bank regulation. After the Great Depression, through the Glass–Steagall Act, the U.S. Congress required that commercial banks only engage in banking activities, whereas investment banks were limited to capital market activities. This separation was mostly repealed in 1999 by the Gramm–Leach–Bliley Act but was restored by the Volcker Rule, implemented in January 2014 as part of the Dodd-Frank Act of 2010.