Abstract

The unexpected collapse of Silicon Valley Bank (SVB) in March 2023 sent shockwaves across global financial markets raising concerns about banking regulations liquidity management and investor confidence. This case study examines the factors that led to SVB’s failure including poor risk management exposure to high-interest rate-sensitive assets and an over-reliance on tech-sector investments. It explores the implications of SVB’s downfall on regional banks venture capital firms and global financial institutions. The study also evaluates the regulatory responses by the U.S. Federal Reserve Treasury Department and other financial oversight bodies in mitigating the crisis. By analyzing banking policies financial stability reports and expert opinions this paper highlights lessons for future banking reforms and the importance of robust financial risk assessment. The findings emphasize the need for improved deposit insurance frameworks stricter capital requirements and proactive intervention