This outline and key information are prepared based on the March 2023 collapse of Silicon Valley Bank (SVB), which was the second-largest bank failure in U.S. history. Paper Outline: The Collapse of Silicon Valley Bank (SVB)
Failure was caused by mismanagement of interest rate risk, high exposure to long-duration securities, and a failure to diversify the client base (tech startups/VCs). 2. Background and Strategic Focus BK.svb
On March 10, 2023, SVB was closed by the FDIC after a This outline and key information are prepared based
In 2020-2021, deposits skyrocketed, which the bank invested into low-yield, long-term bonds. 3. Causes of Failure svb-review-20230428.pdf - Federal Reserve high exposure to long-duration securities
Served ~50% of U.S. venture-backed tech/life science startups.
billion bank run in a single day, fueled by high-concentration, uninsured deposits.