Analysis of the Causes of Silicon Valley Bank’s Collapse and Implications

DOI

10.2991/978-94-6239-801-6_36How to use a DOI?

Keywords

Silicon Valley Bank; Asset-Liability Mismatch; Bank Stability; Government Regulation

Abstract

In recent years, financial innovation continues to develop, and the business of banks gradually become specialized. These phenomena cause changes in the risk structure of banks, especially when the relationship between banks and high-growth industries like technology becomes closer. Taking the collapse of Silicon Valley Bank (SVB) in recent years as an example, this article studies how a bank with high dependence on customers in the technology industry gradually accumulates risks during its rapid development and finally leads to the collapse. The research results show that the collapse of Silicon Valley Bank is not due to one or two operational errors, but the joint effect of the above factors in the situation of long-term loose monetary policy. That is, the concentrated deposit structure of banks, financing-driven cash flow characteristics of the technology industry, long-term asset allocation leading to the exposure of interest rate risks, rapid transmission of confidence shocks in the face of interest rate hikes, and the lack of identification and correction of risks in medium-sized banks at the timing point, which exacerbated the cumulative effect of risks. The research results in this paper can help people have a better understanding of the risk formation mechanism of specialized banks and provide references for the stable operation of financial institutions and improvement of regulatory policies.

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.

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TY  - CONF
AU  - Zhuoran Hao
PY  - 2026
DA  - 2026/10/23
TI  - Analysis of the Causes of Silicon Valley Bank’s Collapse and Implications
BT  - Proceedings of the 2026 2nd International Conference on Financial Innovation and Marketing Management (FIMM 2026)
PB  - Atlantis Press
SP  - 319
EP  - 329
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-801-6_36
DO  - 10.2991/978-94-6239-801-6_36
ID  - Hao2026
ER  -