Silicon Valley Bank, Santa Clara, California, was closed on 10/03/23 by the California Department of Financial Protection and Innovation(FDIC)
7 lessons Learnt
SVB crisis has deep impact on the banking industry .7 lessons from SVB cries we should learn is given as follows
First lesson to be learned from SVB's crisis is the importance of diversification in both investments and customer base
Timing and Messaging
During a crisis, Effective . clear, concise, and well-timed
communication is must
to prevent panic in the market.
Implement effective risk management strategies to mitigate the impact of crises caused by exposure to susceptible markets
Niche Market Focus
Niche market focus can lead to early success but may also make banks more vulnerable to market shifts and changes.
Reputation management is essential for maintaining a positive image in the market and future business prospects.
Stay informed of macroeconomic Like Interest rate Hikes to anticipate and mitigate potential impact on customer base.
SVB's crisis highlights adequacy of capital reserves. Banks should prioritize maintaining sufficient reserves
Banks should prioritize diversification, maintaining adequate capital reserves, Should stay informed about macroeconomic factors and anticipate potential crises to be better prepared