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Silicon Valley Bank collapse focuses attention on regulation of financial services
17 March 2023 00:00
Last week’s collapse of Silicon Valley Bank and Signature Bank has again focused world attention on the health of US-based lenders and the regulatory framework in which they operate. The US government stepped in to protect deposits, as investors rushed to withdraw their funds — Silicon Valley Bank suffered a $42 billion run in a single day. However, attention in now turning to whether more stringent regulation could have detected the problems sooner. Meanwhile, the Bank of England moved swiftly to stabilize Silicon Valley Bank’s UK unit — a move that suggests the BOE’s resolution powers are working as they should.