Investors dumped shares of SVB Financial Group and a swath of US banks after the tech-focused lender said it lost nearly $2bn selling assets following a larger-than-expected decline in deposits.

The four biggest US banks lost $52bn in market value on 9 March. The KBW Nasdaq Bank Index notched its biggest decline since the pandemic roiled the markets nearly three years ago. Shares of SVB, the parent of Silicon Valley Bank, fell more than 60% after it disclosed the loss and sought to raise $2.25bn in fresh capital by selling new shares.