The billionaire entrepreneur replied to a suggestion on Twitter that his technology company should buy the tech lender and "become a digital bank."

The California Department of Financial Protection and Innovation announced Friday that it was taking possession of SVB, citing inadequate liquidity and insolvency. It is reportedly the second-largest bank failure in US history.

The Treasury Department said that Secretary Janet Yellen was closely monitoring the situation around the bank. She expressed full confidence in banking regulators to take appropriate actions in response to its failure.

(With UNI/Sputnik inputs)