The SVB collapse: what it means for Indian equity markets and the banking sector

The SVB collapse: what it means for Indian equity markets and the banking sector

Media interviews a Silicon Valley Bank customer outside of the bank office on March 13, 2023


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

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Author: Shirley