Silicon Valley Bank: The Role of Risk (Mis)Management
商品編號：W34036
出版日期：2024/01/30
再版日期：
商品來源：
商品主題：Finance
商品類型：Case (Pub Mat)
涵蓋議題：banking, risk management, hedging
難易度：4 - Undergraduate/MBA
內容長度：18 頁
地域：United States
產業：Finance and Insurance
事件年度：2023
On March 24, 2015, the chief executive officer of SVB Financial Group Inc., the parent company of Silicon Valley Bank, was testifying to a US Senate committee. His goal was to provide evidence in support of raising the threshold of US$50 billion in assets, for Silicon Valley Bank’s application for enhanced prudential standards under the Dodd-Frank Act. Silicon Valley Bank was above the threshold of $10 billion for some enhanced prudential standards, and close to the $50 billion cut-off for the full array of enhanced prudential standards. By the end of 2021, Silicon Valley Bank still fell below strict scrutiny from the enhanced prudential standards, despite having experienced rapid growth since the US Senate testimony. With the rapid growth of its deposits, the bank was facing a dilemma. Given the nearly zero rates on short-term bonds as of the end of 2021, should Silicon Valley Bank chase the higher yields provided by longer-term bonds and accept higher interest rate risk? What risk management practices should the bank follow? With its deposit base largely uninsured, would the bank’s risk exposure become an issue?
教學手冊：Silicon Valley Bank: The Role of Risk (Mis)Management - Teaching Note
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