IMPACT OF SILICON VALLEY BANK COLLAPSE ON GLOBAL FINANCIAL MARKETS

Keywords:
risk management, bank failure, Silicon Valley Bank (SVB), financial market stability, regulatory oversight

Abstract:
This paper examines the systemic implications of inadequate risk management practices within the banking sector, with a focus on the 2023 collapse of Silicon Valley Bank (SVB) as a critical case study. The analysis examines how concentrated exposure to interest rate-sensitive assets, combined with insufficient liquidity buffers and weak governance mechanisms, precipitated the bank’s rapid failure. Positioned within the broader context of global financial stability, the study underscores the fragility of financial markets in the face of a poorly managed institutional risk. The findings highlight the urgent need for robust risk governance, effective asset-liability management, and proactive regulatory intervention. SVB’s collapse serves as a cautionary example of how erosion of investor confidence—amplified by modern digital dynamics—can trigger widespread market disruptions. The paper concludes with key policy recommendations designed to enhance resilience in the global financial system.

CITATION:

IEEE format

Copy to clipboard

M. Jovanović, M. Turčinović, K. Desai, T.  Špindler, “Impact of Silicon Valley Bank Collapse on Global Financial Markets,” in FINIZ 2025 - The Importance of Business Agility in the Modern Business Environment, Belgrade, Singidunum University, Serbia, 2025, pp. 59-67. doi: 10.15308/finiz-2025-59-67 

APA format

Copy to clipboard

Jovanović, M., Turčinović, M., Desai, K.,  Špindler, T. (2025). Impact of Silicon Valley Bank Collapse on Global Financial Markets. Paper presented at FINIZ 2025 - The Importance of Business Agility in the Modern Business Environment. doi:10.15308/finiz-2025-59-67

BibTeX format
Download

RefWorks Tagged format
Download