Synopsis
Experts believe the SVB downfall will not have a major impact on Indian markets. They feel, while there will be short-term volatility, the overall pain will be limited. However, banking crises are becoming more of a feature than a bug in the greater financial system. Should one blame the irrational exuberance of bank CEOs or the apathy of banking regulators?
On February 23, the Byrne Hobart newsletter informed its readers that the Silicon Valley Bank (SVB) was insolvent and levered at 185:1. The bank was planning to raise cash, and that raised alarms. Customers rushed to withdraw their deposits amounting to USD175 billion, which lead to a ripple effect on financial markets across the world. The US Federal Reserve, which has been on a war footing to tame inflation, will now have to relook at its
BY
- FONT SIZE
AbcSmall
AbcMedium
AbcLarge
Uh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Why ?
Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors
Stock analysis. Market Research. Industry Trends on 4000+ Stocks
Clean experience with
Minimal Ads
Comment & Engage with ET Prime community 
Exclusive invites to Virtual Events with Industry Leaders 
A trusted team of Journalists & Analysts who can best filter signal from noise