Isn't the SVB incident more of a failure of bank supervision than anything else? My understanding is that they weren't big enough to fall under the set of top-tier rules which might have caused their regulators to call shenanigans on their reliance upon large depositors in the first place?
I noted that they weren’t regulated like a G-SIB with tight control over duration risk. Beyond that, I don’t think I am in a position to assign blame in an authoritative fashion.
Isn't the SVB incident more of a failure of bank supervision than anything else? My understanding is that they weren't big enough to fall under the set of top-tier rules which might have caused their regulators to call shenanigans on their reliance upon large depositors in the first place?
I noted that they weren’t regulated like a G-SIB with tight control over duration risk. Beyond that, I don’t think I am in a position to assign blame in an authoritative fashion.