Customer Restraint

It is reported that according to the SEC documents of the United States, Silicon Valley banks have signed exclusive clauses with some customers to limit their ability to obtain banking services from other institutions. These contracts are different in terms of language and scope, making it impossible for these customers to safely distribute their funds to different places. Silicon Valley Bank has signed exclusive terms with some customers Analysis based on this information:Recently, it has come to light that major banks in Silicon Valley have signed exclusive agreements with some of their customers. The agreements, which are reportedly stated in the Securities and Exchange Commission (SEC) documents of the United States, restrict customers’ ability to obtain banking services from any other institutions. In short, customers are bound to seek all their financial services from their Silicon Valley bank of choice. While the practice of exclusivity is not new to banking, the scope of the clauses and language of the agreement…