Silicon Valley Bank Failure – Lessons in Interest Rate Risk Management
South State Correspondent
MARCH 13, 2023
In the case of SVB, liquidity risk was primarily the result of interest rate risk exacerbated by customer concentration. at the end of 2022, and the bank’s filing shows that the mark-to-market loss on the HTM portfolio was over $15B, almost equal to the bank’s equity base, thereby, making the bank economically insolvent.
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