Inspiration and Lessons Learned from the Silicon Valley Bank Collapse

Abstract

The article examines the reasons for the collapse of the Silicon Valley Bank by analyzing a number of articles from the same period. In discussing the causes of failure the article focuses on the allocation of its own resources and the types of bank customers. Through a combination of internal and external discussions, some recommendations on asset allocation and customer selection can be given to future banks in similar situations. This article argues that it is essential for the bank's top management to use foresight and keen analysis when making decisions. In terms of customer base, a diversified customer base can hedge many risks. This is one of the innovative aspects of this paper, preventing problems caused by external factors by changing internal factors. In addition to this, banking institutions need to have a study of investments, and an analysis of national policies is also essential, especially in these particular circumstances.