Silicon Valley Bank: Lessons from a bank collapse

May 05, 2023

As the drumbeat of bad news from the US regional banks grows steadily louder, Euromoney talks to market veterans about the lessons that can be learned from the event that started it all: Silicon Valley Bank’s collapse in March.

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Rob Dwyer, May 03, 2023

“I don’t think anything could have helped withstand a withdrawal rate of $42 billion,” says Chip MacDonald, financial markets specialist at Jones Day. “If $42 billion out of a total $200 billion of assets walks out the door in 24 hours – nobody maintains that kind of liquidity. The fact is SVB had a very concentrated customer base with a concentrated behaviour pattern.”