The Influencing Factors of Liquidity Risk in Commercial Banks: A Case Study of the Bankruptcy of Silicon Valley Bank

DOI

10.2991/978-94-6239-801-6_141How to use a DOI?

Keywords

Silicon Valley Bank; Liquidity risk; Maturity mismatch; Factors; Digital run

Abstract

Bank liquidity risk is the core issue of financial system stability, and its essence comes from the term conversion mechanism of commercial banks supporting long-term assets with short-term liabilities. The bankruptcy of Silicon Valley Bank (SVB) in 2023 reflects the rapid evolution of liquidity risk in the context of interest rate hike cycle and digital finance, and provides an important case for identifying the key factors affecting bank liquidity risk. This paper systematically analyzes the causes, measurement methods, and influencing factors of SVB liquidity risk. In terms of methodology, the liquidity mismatch index (LMI) framework is introduced, and combined with multiple regression analysis, empirical tests are carried out from the dimensions of interest rate level, uninsured deposit structure, asset liability maturity mismatch and capital adequacy ratio. The study found that the interest rate shock caused by the Fed’s interest rate hike is the core external cause of risk outbreak, the maturity mismatch of assets and liabilities is the endogenous basis of risk accumulation, and the high proportion of uninsured deposits significantly amplifies the risk of runs. The discussion further pointed out that the existing studies had shortcomings in dynamic thresholds, risk contagion and regulatory response. In the future, digital run mechanism and social media public opinion indicators need to be included. The research shows that the traditional liquidity risk theory is not suitable for the digital and highly synchronous financial environment, and needs to change to the dynamic risk analysis framework.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Xiaoxi Feng
PY  - 2026
DA  - 2026/10/23
TI  - The Influencing Factors of Liquidity Risk in Commercial Banks: A Case Study of the Bankruptcy of Silicon Valley Bank
BT  - Proceedings of the 2026 2nd International Conference on Financial Innovation and Marketing Management (FIMM 2026)
PB  - Atlantis Press
SP  - 1356
EP  - 1365
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-801-6_141
DO  - 10.2991/978-94-6239-801-6_141
ID  - Feng2026
ER  -