The article highlights that Silicon Valley Bank (SVB) depositors were startups and venture capital investors, whose deposits are not as sticky as retail customers.

SVB’s past investments of its cash reserves in the US debt markets at near zero interest rates made it an underperformer. With its credit ratings under threat, SVB was staring at a $1.8 billion loss, trying to rebalance its underperforming $21 billion debt portfolio. SVB failed due to a run on the bank, when the truth is that it was neither insolvent or even close to being so. Banking as an enterprise survives as much on cash as on confidence, and as the latter waned, the former disappeared.

Read More

Recent News

Sitharaman's budget speeches have mostly been positive in tone despite covid | Prof. Vidya Mahambare writes for Live Mint
Read More
Great Lakes Chennai’s one-year PGPM aims to accelerate careers | Prof. Sanjoy Sircar writes for Financial Express
Read More
Contact Us
  • Great Lakes Institute of Management,
    Prince infocity II,
    Ist floor,
    283/3, rajiv gandhi salai (OMR),
    Kandanchavadi,
    Chennai - 600096
  • +91-44-6699-9300
  • +91-44-6699-9301

Associations

  • Cornell University
  • Chicago Booth
  • Skema Business School
  • Universite De Bordeaux
  • IESEG
  • Frankfurt School of Finance and Management
Back to Top