CASE STUDY:
THE COLLAPSE OF
SILICON VALLEY BANK
TCHE303.3
Group 5
Group members
Đào Mai An
Ngô Trúc Anh
Phạm T. Vân Anh
Ngô Ngọc Hà
Lò Khánh Huyền
Nguyễn Minh Huyền
Ngô Mai Linh
Ng. Ngọc Phương Trang
2212340002
2114410073
2212340007
2112340602
2212340010
2111410073
2212340029
2114410190
Case study: The collapse of SVB
CONTENTS
01. Overview: Silicon Valley Bank
02. The collapse of SVB
03. Causes of the collapse
04. Consequences of the collapse
05. Related cases & Lessons
TCHE303.3
Group 5
OVERVIEW:
SILICON VALLEY BANK
Founded in 1983
16th largest U.S. bank
Insured by the Federal Deposit
Insurance Corporation (FDIC)
OVERVIEW:
SILICON VALLEY BANK
OVERVIEW:
SILICON VALLEY BANK
The collapse of SVB:
The timeline
1983 - 2019
The growth of SVB since establisment
2020 - 2022
The substantial growth in SVB deposits during the pandemic the events leading up to SVB’s collapse
March 2023
The collapse of SVB
Silicon Valley Bank:
The 2020 - 2022 period
SVBFG and banking industry total assets growth index
Silicon Valley Bank:
The 2020 - 2022 period
SVB Deposit
Silicon Valley Bank:
The 2020 - 2022 period
Composition of SVBFG assets
Silicon Valley Bank:
March 2023
Estimated unrealized gains (losses) on SVBFG's
investment portfolio securities
Silicon Valley Bank:
March 2023
After-tax loss: $1.8 Billion dollar
Silicon Valley Bank:
March 2023
Silicon Valley Bank:
March 2023
Silicon Valley Bank:
March 2023
The California Department of Financial
Protection and Innovation (CDFPI) closed SVB
on the morning of March 10 and appointed
the FDIC as receiver.
Causes of
the collapse
Rising interest rates
FED raised interest
rates, causing bonds to
loose value
Investors and
depositors's panic
Investors and depositors
panicked at the news of
the bank’s loss, causing a
bank run and a fall in
stock price
Declining deposits
The company had to sold
its held-to-maturity
securities before maturity
Others
SVB internal
management
Trump 2018 rollbacks
Cause of the collapse:
Rising interest rates
FED raised interest rates
to control inflation
US Treasury Bonds loose
its value
SVB Investment were
worth $17 Billion less
than its fair value
Cause of the collapse:
Declining deposits
As interest rates rose, new deposits into SVB shrank
The company had to sold its held-to-maturity
securities before maturity, resulting in a loss, to help
cover the decline in deposits
Cause of the collapse:
Investors & depositors’ panic
“The first Twitter-fueled bank run”
Cause of the collapse:
Internal management
Lack of diversification
Cause of the collapse:
Others
Trump 2018 rollback
Consequences:
On the stock market
Consequences:
On SVB’s clients
Current situation
Related cases
Recommendation for banks
Diversification
Communication
Recommendation for regulators
monitoring and supervising
Balance
Thank
You
TCHE303.3
Group 5