Economics

Lessons From The Hoover Policy Boot Camp

Contributing Scholar: Amit Seru

Anatomy of a Bank Collapse: Lessons from Silicon Valley Bank and First Republic

The collapse of Silicon Valley Bank served as a wake-up call for other financial institutions, regulators, and investors, highlighting the need for more robust risk management practices, more transparency, and greater need to proactively address vulnerabilities in the financial system. Amit Seru, Senior Fellow at the Hoover Institution, examines what factors led up to SVB’s failure and presents innovative short-term and long-term solutions to help stave off bank failures in the future.

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From Balance Sheets to Bank Failures: The Reality of Banking Stability

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Published March 28, 2024

Amit Seru, Senior Fellow at the Hoover Institution, delves into the complexities of banking in the United States. Balance sheet composition and the management between short-term deposits and long-term investments are just a few factors that contribute to a bank’s profitability. But recent bank crises like the collapse of Silicon Valley Bank highlight the risks that can emerge from the mismanagement of assets and liabilities. Seru provides a deeper understanding of banking principles that can help avoid more bank failures and future financial calamities.

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