SVB: Prudential Regulation Lessons for Europe and the World
vor 2 Monate
While the collapse of Silicon Valley Bank appears to be an example of failure of both bank management and supervision, it also offers insights about prudential regulation. This column draws two main lessons in this respect. The first is that the episode should increase the resolve of public authorities to further improve the resolution framework in the EU. The second is that the extent of protection, in both Europe and worldwide, of short-term deposits that (large and small) companies rely upon for their ordinary business is flawed and needs to be adapted.