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Silicon Valley Bank (SVB)

The United States’ 23 largest banks passed the Federal Reserve’s so-called ‘stress tests’ this year, a sign that the nation’s banking system remains resilient. Photo: AP Photo

The largest banks would survive severe recession, Fed ‘stress tests’ show

The 23 largest US banks passed the Federal Reserve’s stress tests, indicating resilience in the banking system despite the crisis that led to the failure of Silicon Valley Bank, Signature Bank and First Republic Bank.

  • The stress tests have become an annual report card for America’s banking system since being implemented after the Great Recession and 2008 financial crisis
  • The tests show the US banking industry would be able to survive a severe global recession, property crisis and a high unemployment rate

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First Citizens sues HSBC for stealing SVB staff and secrets

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First Republic Bank auction under way, with deal expected by Sunday

Opinion | Is India doomed to chair the most impotent G20 in modern times?

In the face of global crises, the G20 has been paralysed by rivalries and distracted by domestic challenges. Can India, whose reputation is at stake, lead it back into action?

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A man walks past a G20 display in Lucknow, India, on February 12. Under its presidency, India is expected to hold more than 200 meetings in the run-up to the G20 summit. Photo: AP

The View | How China can learn from mistakes in US banking oversight

As China looks to reform its banking regulations, it can avoid US pitfalls, such as letting regional banks lend excessively to one sector or allowing skewed boards. Importantly, the siren call of lobbying for looser banking rules and regulations must be ignored.

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First Republic loses over US$100 billion in deposits after SVB collapse

The bank is exploring options as the news overshadowed its market-beating first-quarter profit and sent shares down 21 per cent.

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The View | Damage from the latest banking crisis is far from done

The effects of a long period of low interest rates being followed by sharp rate increases are likely to be long-lasting and produce more than a mild recession. Rather than repeatedly tightening regulations after a crisis, policymakers should focus on ending quick fixes such as monetary or fiscal easing.

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Protestors hold a boat reading ‘Crisis Suisse’ during a demonstration outside the Credit Suisse Group annual general meeting of shareholders in Zurich on April 4. Credit Suisse faced imminent failure if it was not sold to UBS Group in an emergency rescue last month, according to the Swiss central bank. Photo: Bloomberg

Macroscope | Inevitable US recession means global growth needs urgent care

With the US at risk of recession and world trade growth slowing, major exporters such as China and Germany must compensate with extra domestic reflation. Global growth needs careful nurturing by policymakers, and a return to much easier economic policies should be a priority.

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Opinion | Harder to be a savvy investor as financial, geopolitical risks grow

Financial contagion fears, a toxic geopolitical environment and a proliferation of sanctions have made investors nervous. When risks are rising and returns are falling, investors can only step with great care.

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Opinion | Bigger than Barings: banking crises averted, but how safe is your cash?

Amid systemic failures and fear of contagion, the authorities acted quickly and sought to protect depositors. But the challenge remains to ensure moral hazard, such that the people who make financial mistakes pay the price.

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Rogue trader Nick Leeson arrives at Singapore’s Changi airport on November 23, 1995, after being expelled by Germany to stand trial on charges of fraud and forgery over the collapse of Barings Bank, Britain’s oldest merchant bank. Photo: AFP

Macroscope | US banking woes compound China’s need for US Treasury alternatives

With so much risk flooding the global financial sector, it makes sense for China to look for alternatives to investing in US Treasuries. However, questions remain over how to diversify that risk and maximise returns at the same time, given the ubiquity of the US dollar.

People walk past the US Department of the Treasury in Washington on March 30. China has moved to reduce its holdings of US Treasuries in recent months, but good alternatives for Chinese investment are few and far between. Photo: AFP

Letters | Silicon Valley Bank collapse shows the need to learn from past mistakes

Readers discuss the loophole that fuelled SVB’s collapse, the ‘mountain’ of MTR fares, and platform gaps at train stations.

Macroscope | As social media fuel bank runs, good communication is never more vital

A poorly written press release led to panicked messages spreading on WhatsApp and Twitter, fuelling the run on Silicon Valley Bank. Yet the wider fallout, which has become a global banking crisis, might have been avoided simply by good communication.

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Macroscope | We need a better financial system so bankers can’t go on crashing it

Outside China, banking and finance often seem more of a black box than is healthy for the system. We need a better design for the benefit of many, not bonuses for the few.

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A masked protester at a protest in Rome on October 15, 2011, against the greed of bankers, in what was the worst violence of worldwide demonstrations against corporate greed in the aftermath of the global financial crisis. Photo: AFP

Letters | China can do more to squash antibiotic-resistant superbugs

Readers discuss the need for stronger policy on antimicrobial resistance, and how Hong Kong should respond to the banking crisis.

A woman buys medicine in a pharmacy in Shanghai on March 10. In China, 84 per cent of pharmacies still provide antibiotics without prescriptions. Photo: EPA-EFE

Asia’s start-ups start to squirm as contagion fears linger, easy money dries up

Turmoil in Western financial markets has spurred a flight to safety among global investors, hurting the region’s start-ups – even if most Asian lenders are unlikely to fall to a Silicon Valley Bank-style collapse.

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Macroscope | As US banking stress rises, here’s what investors should be looking at

The Fed’s mopping up of market liquidity has put stress on banks. While the tightening is set to end, market concerns remain. Investors can gauge temperatures by tracking bank deposit shifts and indicators such as the FRA-OIS spread and US Conference Board’s leading credit index

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HSBC has lured ‘billions’ from tech startups since its £1 deal for SVB UK unit

HSBC paid £1 for a £1.4 billion business when it acquired the UK unit of Silicon Valley Bank earlier this month, CEO Noel Quinn says. It has since lured billions of deposits from global tech start-ups.

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HSBC headquarters in Central, Hong Kong, pictured on February 21, 2023. Photo: Elson Li

Macroscope | World might have to settle for pause in interest rate rises with no cuts

That there is still much uncertainty over where benchmark US rates are heading attests to the unpredictability of the financial and economic landscape. What is clear is that while rate increases set off the recent market turmoil, rate cuts would be an indication of the severity of the damage to confidence.

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China must ‘reflect’ on the Silicon Valley Bank collapse, top regulator says

Lu Lei, deputy head of China’s foreign exchange regulator, says authorities must become more vigilant of risks in the financial sector following the sudden collapse of Silicon Valley Bank.

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Letters | ChatGPT can be fine-tuned to serve us all better

Readers discuss how to fully realise the potential of ChatGPT, happier times in US-China relations, and short sellers’ role in capital markets.

A person chats with ChatGPT in Chinese in Shanghai on February 6. Photo: Getty

China launches new anti-corruption probe into top banks, SOEs

China’s new leadership team is racing to defuse financial risks, including at top banks and state-owned industrial giants, against a backdrop of slowing economic growth and an overseas banking crisis.

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The investigation by the Central Commission for Discipline Inspection is the first since the new leadership team was inaugurated earlier this month. Photo: Reuters

Letters | TikTok aside, how safe is social media from CIA?

Readers discuss concerns over social media platforms other than TikTok, and the significance of China’s financial regulatory overhaul.

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Macroscope | Look back to 2008 global crisis for answers to today’s banking woes

The solutions put in place to stabilise the financial system in the wake of the global meltdown have not protected us from the risks of damaged fiscal finances and weak growth potential. With financial confidence still fragile, the ability to cope with shocks like SVB’s collapse and Credit Suisse’s troubles is limited.

Exclusive | Mark Mobius still positive on China, but wants Beijing to relax capital controls

Investment guru Mark Mobius, who earlier had expressed concerns about China’s capital controls, said that while he continues to be bullish on the country, it would be far more attractive to foreign investors if it eases up on investment flows.

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Mark Mobius, the former executive chairman of Templeton Emerging Markets Group. Photo: Reuters

Inside Out | Businesses built on debt could be about to come crashing down

For years, financial institutions have plied companies – particularly rising tech firms – with cheap money, allowing them to accumulate debt without ever turning a profit. Now, as this system threatens to implode, central banks are running to the rescue – again.

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A man walks past a Silicon Valley Bank branch in Santa Monica, California on March 20. SVB, a key lender to start-ups across the US since the 1980s and the country’s 16th-largest bank by assets, had been hit by the tech sector slowdown. Photo: AFP

Opinion | China is quietly revelling in the US’ latest self-made crisis

The string of bank collapses in the US due to a lack of Fed supervision feeds directly into Beijing’s narrative that America’s power is declining.

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Credit Suisse ‘wouldn’t have lasted another day’, Swiss minister says

The Swiss government was forced to intervene to save the troubled bank amid a crisis of investor confidence, Finance Minister Karin Keller-Sutter said.

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Silicon Valley Bank (SVB)
The latest news, analysis and opinion on Silicon Valley Bank (SVB). In-depth analysis, industry insights and expert opinion.
last updated:
22 August, 2024
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