Collapse of regional lender Silicon Valley Bank is pressuring the broader financial industry, as the scope of its demise makes it the largest U.S. bank failure since the global financial crisis of little over a decade ago.

On Friday, the California Department of Financial Protection and Innovation closed SVB after an attempted share sale by the company failed and many Silicon Valley start-ups and venture capitalists started to withdraw their funds. The state regulator names the Federal Deposit Insurance Corp. (FDIC) as the receiver of SVB's funds.

The bank's downfall began on Wednesday, as the lender announced it was looking to raise more than $2 billion in additional capital after taking on a $1.8 billion loss on asset sales. Shares of its parent company, SVB Financial Group (SIVB  ), fell 60% on Thursday and another 60% in premarket trading on Friday before being halted.

That steep decline sent a ripple effect across the financial sector, especially shares of regional banks, with the SPDR KBW Regional Banking ETF (KRE  ) and iShares U.S. Regional Banks ETF (IAT  ) each falling more than 12% in the past two days. Shares of other regional banks like First Republic Bank (FRC  ) and PacWest Bancorp (PACW  ) dropped over 22% and 52%, respectively. Signature Bank (SBNY  ), which also invests heavily in the cryptocurrency space, fell over 32% since Thursday.

The FDIC has created the Deposit Insurance National Bank of Santa clara to hold insured despotis from SVB. The regulator said in its announcement that insured depositors will have access to their deposits no later than Monday.

Uninsured deposit holders will be sent a receivership certificate for the remaining amount of their uninsured funds, with the FDIC's insured limit being $250,000 per each account. The regulator said it will pay uninsured depositors an advanced dividend next week, with the amount of money they receive being determined by sales of SVB's remaining assets.

As of December, SVB has about $209 billion in total assets and $175.4 billion in total deposits, according to the press release. The last U.S. bank failure of magnitude was Washington Mutual in 2008, which had $307 billion in assets.

SVB is a major player in the U.S. start-up space, with it being the only publicly traded bank focused on Silicon Valley and tech industry start-ups. The lender's collapse risks impacting the tech sector alongside the broader financial system.