The worst year for banks since 2008 | FT Film - YouTube
Huge amount of money flew into Silicon valley due to the boom of start up investment, leading to the increased amount of deposit in Silicon valley bank (SVB)
Asset portolio was dominant in long duration bond while deposit of SVB is basically short duration. When US interest rate goes up, bond had huge amount of Unrealized loss and as there was a lot of withdrawal SVB had to sell the bond with the result of reaelized loss. Then they went bankrupt and were rescued by JP morgan.
Credit swiss also envountered the financial criss
Though some banks had difficulty, after 2008 regulation was strengthend to hold enough caputal, damage to whole world was limited
However we are not sure where the risk is and it is important to act pronptly and quickly when risks are realized
