- A combination of deposit concentration risk and declining mark-tomarket bond value leads to liquidity problems that force Silicon Valley Bank to cease operation.
- Measures have been taken to contain the fallout from SVB’s failures, including the Fed’s new liquidity facility (BTFP). However, the surgical nature of the BTFP facility means that the Fed could still tighten over the next few meetings albeit not as aggressive as first thought.
- Diversified clientele and favorable bond market conditions insulate Indonesian banks from liquidity problems that had bring down SVB.
