Description:
This article discusses the recent bank failures of Silicon Valley Bank (SVB) and Signature Bank (Signature) and analyzes the balance sheets of these banks to determine if they were outliers or if they represent a systemic problem in risk management. We highlight how uninsured deposits held at each of these banks contributed to their run. Our analysis suggests that SVB and Signature were not representative of the canary in the coal mine and that they do not represent the average risk among banks, but a classic bank run cannot be precluded