Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 38 , 10 November 2023


Open Access | Article

Inspiration and Lessons Learned from the Silicon Valley Bank Collapse

Songle Qi * 1
1 University of Liverpool

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 38, 30-34
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Songle Qi. Inspiration and Lessons Learned from the Silicon Valley Bank Collapse. AEMPS (2023) Vol. 38: 30-34. DOI: 10.54254/2754-1169/38/20231880.

Abstract

The article examines the reasons for the collapse of the Silicon Valley Bank by analyzing a number of articles from the same period. In discussing the causes of failure the article focuses on the allocation of its own resources and the types of bank customers. Through a combination of internal and external discussions, some recommendations on asset allocation and customer selection can be given to future banks in similar situations. This article argues that it is essential for the bank's top management to use foresight and keen analysis when making decisions. In terms of customer base, a diversified customer base can hedge many risks. This is one of the innovative aspects of this paper, preventing problems caused by external factors by changing internal factors. In addition to this, banking institutions need to have a study of investments, and an analysis of national policies is also essential, especially in these particular circumstances.

Keywords

decision-making, banking crises, Silicon Valley Bank

References

1. Yousaf, I. & Goodell, J. W. (2023) Responses of US equity market sectors to the Silicon Valley Bank implosion. https://doi.org/10.1016/j.frl.2023.103934

2. Brodeur, A., Gray, D., Islam, A. & Bhuiyan, S. (2021) A literature review of the economics of COVID-19. https://doi.org/10.1111/joes.12423

3. Vo, L. V. & Le, H. T. T. (2023) From Hero to Zero - The Case of Silicon Valley Bank. https://papers.ssrn.com/abstract=4394553

4. Why did Silicon Valley Bank fail? (2023, March 10). Retrieved from https://www.theguardian.com/us-news/2023/mar/10/silicon-valley-bank-collapse-explainer

5. Feds see bank chiefs and themselves at fault for Silicon Valley bank collapse. (2023, April 29). Retrieved from https://www.voachinese.com/a/fed-faults-silicon-valley-bank-execs-itself-in-bank-failure-20230429/7071534.html

6. Live from the scene: Long lines of depositors still eager to withdraw money even after Silicon Valley banks resume opening. (2023, March 14). Retrieved from https://finance.sina.com.cn/jjxw/2023-03-14/doc-imykuyaf5250020.shtml

7. Anli, S., Monalisa, M Aarthi.  Journal of Finance, Accounting, and Management; Beverly Hills. (2023) Concomitance of Instability Delving the Silicon Valley Bank Catastrophe 2023. https://www.proquest.com/openview/a5f1d65af0eee96e77e5f442ca71e844/1?cbl=2032035&pq-origsite=gscholar

8. Hewlett, C. V. (2023) In re Silicon Valley Bank: Order taking possession of property and business. https://dfpi.ca.gov/wp-content/uploads/sites/337/2023/03/DFPI-Orders-Silicon-Valley-Bank-03102023.pdf

9. Hewlett, C. V. (2023) In re Silicon Valley Bank: Order taking possession of property and business. https://dfpi.ca.gov/wp-content/uploads/sites/337/2023/03/DFPI-Orders-Silicon-Valley-Bank-03102023.pdf

10. Liu, X & Wei, S. (2023) The effect of Silicon Valley Bank collapse on its client companies. https://ssrn.com/abstract=4443827

11. Dinh, H. T. (2023) Lessons From the Silicon Valley Bank Crisis. Policy notes & Policy briefs 2005, Policy Center for the New South. https://ideas.repec.org/p/ocp/ppaper/pb15-23.html

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-097-4
ISBN (Online)
978-1-83558-098-1
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/38/20231880
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated