Too big to fail: The aftermath of Silicon Valley Bank (SVB) collapse and its impact on financial markets

Cryptocurrency in the Aftermath: Unveiling the Impact of the SVB Collapse

“…Additionally, the collapse exposes flaws in the current treatment of short-term corporate deposits, calling for a reevaluation of insurance caps and liquidity requirements. Aharon et al [10] investigated the ripple effects of the SVB collapse on global equity markets, finding a largely negative response across Europe, Latin America, the Middle East, and Africa. Another finding is the Asian market showed a delayed but significant negative reaction in the days following the event.…”

Connectedness Between Gold-Backed Cryptocurrencies and the G7 Stock Market Indices During Global Crises: Evidence From the Quantile Vector Autoregression Approach

“…Unexpected and rare events possess the capability not only to disrupt the stable growth of the global economy but also to pose a significant threat to participants in financial markets. Recently, there has been notable stress, volatility, considerable uncertainty, and financial contagion in global financial markets, attributed to the COVID-19 health crisis, the ongoing Russia-Ukraine conflict, and the Silicon Valley Bank crisis (Aharon et al, 2023;Akhtaruzzaman et al, 2021;Batten et al, 2023;Fakhfekh et al, 2023;Frikha et al, 2023;Ghorbel et al, 2022;Jana & Sahu, 2023a, 2023Khalfaoui et al, 2023;Pandey et al, 2023;. In comparison to previous economic and financial downturns, the challenges and risks associated with the recent health, geopolitical, and financial crises have prompted investors to seek uncorrelated assets as a means of safeguarding their stock market portfolios (Wang et al, 2022;Wen et al, 2022).…”

“…2 Moreover, the British stock index (FTSE100) ended with a decline of about 2% in the aftermath of this crisis. 3 According to Aharon et al (2023), the stock markets in the Middle East, Europe, Latin America, and Africa responded unfavorably to the Silicon Valley Bank (SVB) crisis. Pandey et al (2023) state that the SVB collapse harmed global stock markets, particularly in advanced markets compared to emerging ones.…”