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Silicon Valley Bank’s failure highlights  heightened financial stability risks amid monetary tightening

Silicon Valley Bank’s failure highlights heightened financial stability risks amid monetary tightening

14 March 2023

On March 10, California and federal banking regulators shut down Silicon Valley Bank (SVB) and seized its deposits citing both illiquidity and insolvency. This is the 2nd largest failure of a U.S. financial institution after Washington Mutual in 2008. Although the bank was specialized in banking for tech startups in the Silicon Valley area, SVB was estimated to be the 16th largest commercial bank in the U.S. with about 209 billion USD in consolidated assets at the end of 2022. While its collapse doesn't appear to be systemic, it highlights the impact of rate hikes on financial stability and heightened risk in the US tech industry. The events are also a reminder that the impact of monetary tightening are still very much to come.

SMEs in China: Monetary easing won’t be sufficient to reduce credit pressure

SMEs in China: Monetary easing won’t be sufficient to reduce credit pressure

20 November 2018

When considering risk in the Chinese economy, a lot of the discussion has focused on large State-Owned Enterprises (SOEs) or large private conglomerates. However, headwinds impacting Small and Medium Enterprises (SMEs) should not be neglected.

‘Heartbreak Hotel’ beckons as PPI becomes a UK industry issue

‘Heartbreak Hotel’ beckons as PPI becomes a UK industry issue

09 September 2013

When Elvis Presley burst onto the music scene in 1954 with his gyrating hips and unconventional sound, there were many older folks (particularly in the more conservative parts of the USA) which boldly stated that this type of music will never catch on.

Large Customers Can Hamper Business

Large Customers Can Hamper Business

03 July 2012

Large companies and government organisations are taking longer to pay SMEs creating significantly higher credit risks for small companies.

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Making sense of the consumer credit morass

Making sense of the consumer credit morass

12 October 2010