What is the banking crisis of 2023?

The crisis the WSJ is alluding to is the short-term “crisis of 2023.” The industry, however, is in the throes of the “ Crisis of the ‘20s, ” a crisis that will last the entire decade. This crisis touches banks’ products, technologies, people, processes, and the political climate. Here are five elements of the Banking Crisis of the ‘20s:

Why did SVB and First Republic Bank collapse?

Over the course of a few weeks in the spring of 2023, multiple high-profile regional banks suddenly collapsed: Silicon Valley Bank (SVB), Signature Bank, and First Republic Bank. These banks weren’t limited to one geographic area, and there wasn’t one single reason behind their failures.

What happened to Silicon Valley Bank in 2023?

The latest on the 2023 banking crisis, which began with the collapse of Silicon Valley Bank, the 16th largest bank in the U.S., on March 10. Rising interest rates sunk the value of long-dated Treasury bond assets the bank was holding, causing it to reach out to investors for more funds.

What would happen if banks collapse?

The danger is that more and more customers move their money to the bigger banks, making it more likely that the smaller banks collapse. Consumers would then have fewer banks to choose from and could end up paying higher prices for financial services or have less access to financial products.