The collapse of Silicon Valley Bank serves as a reminder of the importance of robust risk management, sound regulatory oversight and effective liquidity management.
US regulators chose to reveal detailed information to the public about the state of the banks. They were able to be so transparent, without triggering a run, because of a strong fiscal backstop.
Over the past two weeks, two of Bulgaria’s largest financial institutions have experienced bank runs. This triggered memories of the banking crisis in 1996-97 when one-third of the banks in this emerging…