The Banking System After SVB's Failure

A collection of research on the banking sector

Following the 2007-08 Global Financial Crisis, plenty of regulatory measures were put in place to prevent another Lehman Brothers moment. But have these measures been enough? The recent failure of Silicon Valley Bank has prompted both regulators and investors to ask this question. What can allocators expect from the banking sector going forward? Find out from the research below.

Global Banking Annual Review (McKinsey & Company)

Over the past 12 years, the global banking sector has experienced a remarkably flat period. For example, ROE hovered at or below the cost of equity.

No Systemic Risk From SVB Failure, But Watch Out For Vulnerabilities (Amundi)

For compliance reasons, this paper is NOT accessible in the United States

Following SVB's failure, industry lending standards will likely tighten further, which will constrain economic growth, but also reduce inflation.

Where Will SVB's Assets End Up? (Pitchbook)

SVB Financial CEO Greg Becker said in a recent video that he was working with the FDIC to find a buyer for part of the bank. What about the other assets?

What Do We Know about the Demand for Bank of England Reserves? (Bank of England)

Reserves are deposits held by commercial banks at the central bank. Banks use reserves to settle payments with one another, i.e. reserves are the money of the banking system.

Non-Bank Financial Institutions and Banks’ Fire-Sale Vulnerabilities (FRBNY)

Non-Bank Financial Institutions have grown in their importance for the global economy and financial markets, as they play a bigger role now in providing liquidity to the system.

Video: Silicon Valley Bank | Panic In The Banking System (Blockworks Macro)

The failure of the Silicon Valley Bank is the biggest since the Lehman Brothers event that triggered the GFC. But is it quite the same or can investors be more relaxed?

Central Banking after the Pandemic: Challenges Ahead (BIS)

This paper looks at, among other things, the relationship between central banks and private banks today.

The European Repo Market at 2022 year-end (ICMA)

The euro repo market has established itself as perhaps the most difficult to predict with respect to pricing and liquidity conditions over year-end.