Abstract

Silicon Valley Bank went bankrupt in March 2023 and was overtaken by the Federal Deposit Insurance Corporation (FDIC), announcing its entry into bankruptcy liquidation proceedings. This event has aroused strong market attention and extensive discussion. Based on the history of the construction of Silicon Valley Bank, the characteristics of the bank, and the reasons for its failure, we have sorted out and studied the reasons for the failure of Silicon Valley Bank. This article proposes effective management measures for strengthening risk, management and asset allocation of Silicon Valley Bank through analysing its risk management and asset allocation from four aspects: credit risk, liquidity risk, market risk and operational risk. The reasons for the failure of Silicon Valley banks is analyzed in terms of liquidity, lending, markets and decision-making. We hope that through this research, managers can improve relevant financial loopholes in a more timely manner to avoid similar incidents from happening again.

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