Impact of the collapse of silicon valley bank on the banking sector: An analysis based on nonlinear high-frequency networks

Abstract

We analyse the impact of the collapse of Silicon Valley Bank (SVB) on the causal structure using a sequence of high-frequency transfer entropy networks. Calculations show that the event significantly affected the causal structure of the banking sector and that companies with high market capitalisation had stronger influence after the event. Finally, path-based indicators suggest that SVB had significant influence before the crisis.