Analysis of the Causes and Implications of the Silicon Valley Bank Bankruptcy Event
DOI:
https://doi.org/10.62051/k76fny45Keywords:
Silicon Valley Bank; bank run; financial regulation; liquidity risk; China.Abstract
On March 8, 2023, Silicon Valley Bank experienced a financial collapse, and on March 10, a trillion-dollar bank with a 40-year history ceased operations. In less than 48 hours, the bank experienced a liquidity crisis, a rapid bank run, and finally its closure and takeover. This was the largest bank bankruptcy in the United States since the 2008 financial crisis. This paper retrospectively reviews the development process of the Silicon Valley Bank bankruptcy, analyzes its internal causes (such as asset-liability mismatch and high concentration of risk) and external causes (such as interest rate hikes, deregulation, and information disclosure failures). It further discusses the current situation of China’s commercial banks and extracts lessons for both regulators and financial institutions.
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