Big interest rate hikes could cause more market turmoil, while doing too little could have the same effect.
Articles on Bank failure
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The collapse of Silicon Valley Bank serves as a reminder of the importance of robust risk management, sound regulatory oversight and effective liquidity management.
Large Canadian banks are likely not at risk of bank failures, but history suggests smaller, more niche financial service firms could be.
New rules following a spate of bank failures in 19th century Britain could provide some lessons for today’s regulators.
Lenders face a lot of risks, but two of them – interest rate and liquidity – were the main drivers of the sudden and rapid failure of Silicon Valley Bank and Signature Bank. That’s why more trouble may be ahead for the banking sector.
SVB, as it’s known, collapsed with lightning speed following a run on its deposits.
The subprime crisis and the subsequent failure of Lehman Brothers came as such a shock – and the repercussions were so severe that when the time came to mount a response, policy makers were as surprised…
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Professor of Economics and Political Science, University of California, Berkeley
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Associate Professor of Economics, Indiana University
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PhD Candidate in Financial Modelling, Western University
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Associate Professor, Gustavson School of Business and Lansdowne Chair in Finance, University of Victoria
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Professor of Finance and Fred T. Tattersall Excellence in Finance Research Chair, West Virginia University
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Associate Professor of Finance, Texas State University
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Professor in Business History, Henley Business School, University of Reading
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Reader of Commercial Law, Queen's University Belfast
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Associate Professor and Canada Research Chair in Banking and Insurance Analytics, Western University