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What does Silicon Valley Bank’s collapse mean for the financial system?

Silicon Valley Bank (SVB)'s collapse has raised questions about the financial system, its own balance-sheet and other banks' bond portfolios.

1 min read
  • Silicon Valley Bank (SVB), the 16th-largest lender in America, with about $200bn in assets, has gone bust.
  • The bank's financial position has deteriorated over several years.
  • SVB's share price plummeted by 60% after its attempt to raise $2.5bn to plug a hole in its balance-sheet was revealed.
  • The bank's capital-raising efforts have failed and it is seeking to sell itself to a larger institution.
  • Nearly all banks are sitting on unrealised losses in their bond portfolios.
What does Silicon Valley Bank’s collapse mean for the financial system?
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