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Lesson from SVB Failure
- 1 New York University, New York, 10011, USA
- 2 Shanghai Pudong Huxin Middle School, Shanghai, 200129, China
- 3 Taizhou high school, Jiangsu, Taizhou, 225300, China
- 4 McCallie, Chatanooga, 37404, USA
* Author to whom correspondence should be addressed.
Abstract
In the first quarter of 2023, Silicon Valley Bank declared bankruptcy. This paper's goal is to examine Silicon Valley Bank's collapse from the perspectives of the asset and liability side of the corporate annual report, interest rate, firm management, bank regulatory mechanism, and market impact. Silicon Valley's bank failures began with the Federal Reserve's rapid rise in interest rates over a short period of time. This paper also discusses the implications for the industry and the world as a whole by this declaration of Silicon Valley Bank's bankruptcy. In addition, by comparing the way Chinese banks and Silicon Valley banks reserve and invest their assets, it can be seen why such an incident is less likely to happen in China than in the United States. Similarly, different approaches to asset allocation can have a direct impact on a bank's profit and loss position.
Keywords
Silicon Valley Bank collapse, long-term bonds, internal and external factors
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Cite this article
Ma,W.;Gu,Y.;Chen,P.;Pan,J. (2024). Lesson from SVB Failure. Advances in Economics, Management and Political Sciences,82,315-323.
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Volume title: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
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