Silicon Valley Bank, Santa Clara, California, was closed on 10/03/23 by the California Department of Financial Protection and Innovation(FDIC)

SVB Closed

7 lessons Learnt

SVB crisis has deep  impact on the banking industry .7  lessons from SVB cries we should learn is given as follows

Diversify Investments

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.


Risk Management

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

Reputation management is essential for maintaining a positive image in the market and future business prospects.


Macroeconomic Factors

Stay informed of macroeconomic Like Interest rate Hikes to anticipate and mitigate potential impact on customer base.


Capital Adequacy

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