Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 19, 2023 erstellt
Description:
This paper examines the factors that contributed to the rapid collapse of Silicon Valley Bank, once regarded as one of the best banks. We show that the bank invested heavily in debt securities during a period of low interest rates, and the subsequent surge in interest rates in 2022 resulted in significant unrealized losses. Additionally, the bank's deposits were heavily concentrated among a small group of venture capitalists, which increased the risk of a bank run. Furthermore, the bank held less equity capital compared to its peers, which exacerbated the impact of the risk. Overall, the mismanagement of assets and liabilities led to the failure of Silicon Valley Bank