Crisis and Reflection on the Banking Sector Based on the Collapse of Credit Suisse and Silicon Valley Bank

Abstract

In March 2023, global financial markets were in the spotlight due to the failure of Credit Suisse and Silicon Valley Bank. This paper provides an analysis of two high-profile events, the takeover of Credit Suisse and the bankruptcy of Silicon Valley Bank. These two banks suffered from financial crises resulting from liquidity crunches and inadequate risk management systems, and the negative effects on their reputations began to spread to the outside world, this triggered widespread volatility in the financial markets and ultimately led to their downfall. Through research and data analysis, this article reveals the reasons behind the collapses of Credit Suisse and Silicon Valley Bank, this article discusses the reasons for the collapse of Credit Suisse and Silicon Valley Bank and discusses their far-reaching impact on the global financial market, especially the investment market. The article proposes feasible solution strategies, offering insights for the financial market and investment industry.