Causes and Consequences of the Silicon Valley Bank Collapse: Examining the Interplay Between Management Missteps and the Federal Reserve's Floundering Decisions

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Abstract

Abstract
The recent failure of Silicon Valley Bank, one of the largest banks in the world's technology capital, has sent shockwaves throughout the financial sector. It is essential to have a solid understanding of the various causes that led to the bank's failure. The current study sheds light on the subject by analyzing the data and looking at the relevant information. The present study investigates the particular roles that a variety of contributing elements played in the failure of the bank by using the evidence that is already accessible. This evidence includes data that has been published and reports that have been written on the topic. The bank's demise can be ascribed to a combination of management errors, regulatory oversight failings, and government involvement, according to the findings of an in-depth investigation of the causes that contributed to the bank's downfall. The research emphasizes the significance of effective risk management and diversity in investing strategies while simultaneously sounding a warning about the possible dangers of loosening up on regulatory requirements. In conclusion, the research highlights the significant part that effective management plays in the banking industry and issues a call for banks and policymakers to successfully traverse an uncertain and challenging landscape in order to mold the future of the financial system. The study provides implications for both practitioners and academics.
Original languageEnglish
Pages (from-to)38-46
Number of pages9
JournalJournal of World Economic Research
Volume12
Issue number1
DOIs
Publication statusPublished - 27 Jun 2023

Keywords

  • Silicon Valley Bank, Bank Failure, Management, Government Intervention

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