Causes and Consequences of the Silicon Valley Bank Collapse: Examining the Interplay Between Management Missteps and the Federal Reserve's Floundering Decisions

Abdullah Saif. S. S. Al-Sowaidi; Ahmad M. W. Faour

doi:doi:10.11648/j.jwer.20231201.15

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Causes and Consequences of the Silicon Valley Bank Collapse: Examining the Interplay Between Management Missteps and the Federal Reserve's Floundering Decisions

Abdullah Saif. S. S. Al-Sowaidi, Ahmad M. W. Faour

Published in Journal of World Economic Research (Volume 12, Issue 1)

Received: 17 May 2023 Accepted: 12 June 2023 Published: 27 June 2023

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Abstract

The recent failure of Silicon Valley Bank, one of the largest banks in the world's technology capital, has sent shockwaves throughout the financial sector. It is essential to have a solid understanding of the various causes that led to the bank's failure. The current study sheds light on the subject by analyzing the data and looking at the relevant information. The present study investigates the particular roles that a variety of contributing elements played in the failure of the bank by using the evidence that is already accessible. This evidence includes data that has been published and reports that have been written on the topic. The bank's demise can be ascribed to a combination of management errors, regulatory oversight failings, and government involvement, according to the findings of an in-depth investigation of the causes that contributed to the bank's downfall. The research emphasizes the significance of effective risk management and diversity in investing strategies while simultaneously sounding a warning about the possible dangers of loosening up on regulatory requirements. In conclusion, the research highlights the significant part that effective management plays in the banking industry and issues a call for banks and policymakers to successfully traverse an uncertain and challenging landscape in order to mold the future of the financial system. The study provides implications for both practitioners and academics.

Published in	Journal of World Economic Research (Volume 12, Issue 1)
DOI	10.11648/j.jwer.20231201.15
Page(s)	38-46
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Silicon Valley Bank, Bank Failure, Management, Government Intervention

References

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APA Style

Abdullah Saif. S. S. Al-Sowaidi, Ahmad M. W. Faour. (2023). Causes and Consequences of the Silicon Valley Bank Collapse: Examining the Interplay Between Management Missteps and the Federal Reserve's Floundering Decisions. Journal of World Economic Research, 12(1), 38-46. https://doi.org/10.11648/j.jwer.20231201.15

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ACS Style

Abdullah Saif. S. S. Al-Sowaidi; Ahmad M. W. Faour. Causes and Consequences of the Silicon Valley Bank Collapse: Examining the Interplay Between Management Missteps and the Federal Reserve's Floundering Decisions. J. World Econ. Res. 2023, 12(1), 38-46. doi: 10.11648/j.jwer.20231201.15

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AMA Style

Abdullah Saif. S. S. Al-Sowaidi, Ahmad M. W. Faour. Causes and Consequences of the Silicon Valley Bank Collapse: Examining the Interplay Between Management Missteps and the Federal Reserve's Floundering Decisions. J World Econ Res. 2023;12(1):38-46. doi: 10.11648/j.jwer.20231201.15

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@article{10.11648/j.jwer.20231201.15,
  author = {Abdullah Saif. S. S. Al-Sowaidi and Ahmad M. W. Faour},
  title = {Causes and Consequences of the Silicon Valley Bank Collapse: Examining the Interplay Between Management Missteps and the Federal Reserve's Floundering Decisions},
  journal = {Journal of World Economic Research},
  volume = {12},
  number = {1},
  pages = {38-46},
  doi = {10.11648/j.jwer.20231201.15},
  url = {https://doi.org/10.11648/j.jwer.20231201.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20231201.15},
  abstract = {The recent failure of Silicon Valley Bank, one of the largest banks in the world's technology capital, has sent shockwaves throughout the financial sector. It is essential to have a solid understanding of the various causes that led to the bank's failure. The current study sheds light on the subject by analyzing the data and looking at the relevant information. The present study investigates the particular roles that a variety of contributing elements played in the failure of the bank by using the evidence that is already accessible. This evidence includes data that has been published and reports that have been written on the topic. The bank's demise can be ascribed to a combination of management errors, regulatory oversight failings, and government involvement, according to the findings of an in-depth investigation of the causes that contributed to the bank's downfall. The research emphasizes the significance of effective risk management and diversity in investing strategies while simultaneously sounding a warning about the possible dangers of loosening up on regulatory requirements. In conclusion, the research highlights the significant part that effective management plays in the banking industry and issues a call for banks and policymakers to successfully traverse an uncertain and challenging landscape in order to mold the future of the financial system. The study provides implications for both practitioners and academics.},
 year = {2023}
}

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TY - JOUR
T1 - Causes and Consequences of the Silicon Valley Bank Collapse: Examining the Interplay Between Management Missteps and the Federal Reserve's Floundering Decisions
AU - Abdullah Saif. S. S. Al-Sowaidi
AU - Ahmad M. W. Faour
Y1 - 2023/06/27
PY - 2023
N1 - https://doi.org/10.11648/j.jwer.20231201.15
DO - 10.11648/j.jwer.20231201.15
T2 - Journal of World Economic Research
JF - Journal of World Economic Research
JO - Journal of World Economic Research
SP - 38
EP - 46
PB - Science Publishing Group
SN - 2328-7748
UR - https://doi.org/10.11648/j.jwer.20231201.15
AB - The recent failure of Silicon Valley Bank, one of the largest banks in the world's technology capital, has sent shockwaves throughout the financial sector. It is essential to have a solid understanding of the various causes that led to the bank's failure. The current study sheds light on the subject by analyzing the data and looking at the relevant information. The present study investigates the particular roles that a variety of contributing elements played in the failure of the bank by using the evidence that is already accessible. This evidence includes data that has been published and reports that have been written on the topic. The bank's demise can be ascribed to a combination of management errors, regulatory oversight failings, and government involvement, according to the findings of an in-depth investigation of the causes that contributed to the bank's downfall. The research emphasizes the significance of effective risk management and diversity in investing strategies while simultaneously sounding a warning about the possible dangers of loosening up on regulatory requirements. In conclusion, the research highlights the significant part that effective management plays in the banking industry and issues a call for banks and policymakers to successfully traverse an uncertain and challenging landscape in order to mold the future of the financial system. The study provides implications for both practitioners and academics.
VL - 12
IS - 1
ER -

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Author Information

Abdullah Saif. S. S. Al-Sowaidi

Faculty of Social Sciences and Solvay Business School, Department of Business (BUSI), Vrije Universiteit of Brussels, Brussels, Belgium
Ahmad M. W. Faour

Private and Economic Law Institution, Vrije Universiteit of Brussels, Brussels, Belgium

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APA Style

Abdullah Saif. S. S. Al-Sowaidi, Ahmad M. W. Faour. (2023). Causes and Consequences of the Silicon Valley Bank Collapse: Examining the Interplay Between Management Missteps and the Federal Reserve's Floundering Decisions. Journal of World Economic Research, 12(1), 38-46. https://doi.org/10.11648/j.jwer.20231201.15

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ACS Style

Abdullah Saif. S. S. Al-Sowaidi; Ahmad M. W. Faour. Causes and Consequences of the Silicon Valley Bank Collapse: Examining the Interplay Between Management Missteps and the Federal Reserve's Floundering Decisions. J. World Econ. Res. 2023, 12(1), 38-46. doi: 10.11648/j.jwer.20231201.15

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AMA Style

Abdullah Saif. S. S. Al-Sowaidi, Ahmad M. W. Faour. Causes and Consequences of the Silicon Valley Bank Collapse: Examining the Interplay Between Management Missteps and the Federal Reserve's Floundering Decisions. J World Econ Res. 2023;12(1):38-46. doi: 10.11648/j.jwer.20231201.15

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@article{10.11648/j.jwer.20231201.15,
  author = {Abdullah Saif. S. S. Al-Sowaidi and Ahmad M. W. Faour},
  title = {Causes and Consequences of the Silicon Valley Bank Collapse: Examining the Interplay Between Management Missteps and the Federal Reserve's Floundering Decisions},
  journal = {Journal of World Economic Research},
  volume = {12},
  number = {1},
  pages = {38-46},
  doi = {10.11648/j.jwer.20231201.15},
  url = {https://doi.org/10.11648/j.jwer.20231201.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20231201.15},
  abstract = {The recent failure of Silicon Valley Bank, one of the largest banks in the world's technology capital, has sent shockwaves throughout the financial sector. It is essential to have a solid understanding of the various causes that led to the bank's failure. The current study sheds light on the subject by analyzing the data and looking at the relevant information. The present study investigates the particular roles that a variety of contributing elements played in the failure of the bank by using the evidence that is already accessible. This evidence includes data that has been published and reports that have been written on the topic. The bank's demise can be ascribed to a combination of management errors, regulatory oversight failings, and government involvement, according to the findings of an in-depth investigation of the causes that contributed to the bank's downfall. The research emphasizes the significance of effective risk management and diversity in investing strategies while simultaneously sounding a warning about the possible dangers of loosening up on regulatory requirements. In conclusion, the research highlights the significant part that effective management plays in the banking industry and issues a call for banks and policymakers to successfully traverse an uncertain and challenging landscape in order to mold the future of the financial system. The study provides implications for both practitioners and academics.},
 year = {2023}
}

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