US bank runs hold key lessons for India
1 year, 8 months ago

US bank runs hold key lessons for India

Hindustan Times  

The collapse of a few mid-sized American banks and the crisis of confidence in Credit Suisse, a major European bank — all in the span of just one week — threatened to snowball into another global financial crisis. Before Silicon Valley Bank emerged on the scene, the Fed made an unequivocal commitment to return US inflation to the target of 2% from its current level of 6%. A large proportion of SVB’s deposits was from technology companies and typically far higher in size than the deposit insurance cover of $250,000. Maturity transformation of this kind — short-duration deposits funding long-duration assets — is a normal part of the banking business.

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Markets panic as Silicon Valley Bank fallout keeps spreading
1 year, 9 months ago

Markets panic as Silicon Valley Bank fallout keeps spreading

The Telegraph  

Despite specific concerns about these lenders, a domino effect-style crisis of the type seen in 2008 is unlikely given the mechanics of the SVB collapse are sufficiently different. Analysts at JP Morgan concluded: “SVB carved out a distinct and riskier niche than other banks, setting itself up for large potential capital shortfalls in case of rising interest rates, deposit outflows …

Silicon Valley Bank jitters likely to be felt in the Indian banking system?
1 year, 9 months ago

Silicon Valley Bank jitters likely to be felt in the Indian banking system?

Live Mint  

Friday's implosion of Silicon Valley Bank has sparked widespread fears of a spillover into the broader banking sector. The Reserve Bank of India has has learnt its lessons from the recent bank failures and has put measures in place that have made sure financial stability is not at risk for the Indian banking system. We are in a credit upcycle," …

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