What Does the Collapse of Silicon Valley Bank Mean for Us?
14 Mar 2023
Less than a week following the collapse of Silicon Valley Bank, which caused widespread panic and uncertainty, the global community remains shocked. Despite the joint statement by U.S. Treasury, Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC) on March 12, which aimed to reassure depositors of the safety of their funds, the panic has persisted and even extended to the broader financial system.
The collapse of Silicon Valley Bank raised concerns that other small and medium-sized banks could face similar problems, this exposed those small and medium-sized banks to sudden liquidity crisis. In addition to that, what we should pay particular attention to is that the event will most likely trigger a chain reactions in the future.