The chances of any bank in Australia or New Zealand following the trajectory of Silicon Valley Bank and Credit Suisse is effectively zero.
Silicon Valley Bank, the sixteenth-largest bank in the U.S., collapsed on March 10, 2023 after customers tried to collectively withdraw $42 billion in a single day.
(AP Photo/Jeff Chiu)
The collapse of Silicon Valley Bank serves as a reminder of the importance of robust risk management, sound regulatory oversight and effective liquidity management.
The U.S. Federal Deposit Insurance Corporation seized the assets of Silicon Valley Bank on March 10, 2023, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis.
(AP Photo/Jeff Chiu)
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.
Customers queued to withdraw money as fears spread.
EPA
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…