Analysis of SVB's Collapse from Financial and Human Nature Perspectives

Following the Federal Reserves rapid increase in interest rates, the bankruptcy of Silicon Valley Bank raised concerns of the general public. Selecting data, tables, graphs, financial reports, and media reports from the Federal Reserve, Silicon Valley Banks Financial Group, Wall Mine, and other resources, this research finds that duration mismatch and the problem in the executive team interact with each other and affect the stable functioning of SVB, contributing to its failure. By analyzing the resources mentioned above, making comparisons where it is possible, and conducting logical reasoning according to human psychology, this research realizes that it is the factors that are mentioned before that responsible for the collapse of Silicon Valley Bank. Based on the research result, we claim that large financial institutions need to learn lessons from the event of SVB.