Lessons learnt from the collapse of SVB

In a flurry of events precipitating from several months of financial hassles, Silicon Valley Bank (SVB), the 39-year-old economic powerhouse headquartered in California, was shut down by state and federal banking regulators. The bank's parent company, SVB Financial Group, filed for bankruptcy only a week after the shutdown, with its representatives forced to sell its portfolio of treasuries and securities at a $1.8 billion loss. It made Silicon Valley Bank the most significant bank failure since Washington Mutual's closure in the financial crisis of 2008. And, before its fall, Silicon Valley Bank was the 16th largest bank in the US, with over $200 billion in assets as of December 2022. Investigations carried out revealed gross mismanagement of risk at the company which critics have linked to a perpetual stagnation of the company's tech stack and internal processes. 

Five lessons from the collapse of Silicon Valley Bank

Source: Business and Financial Times

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