Repercussions of the Silicon Valley Bank collapse on global stock markets

Dharen Kumar Pandey; M.Kabir Hassan; Vineeta Kumari; Rashedul Hasan

doi:10.1016/j.frl.2023.104013

Repercussions of the Silicon Valley Bank collapse on global stock markets

Dharen Kumar Pandey, M.Kabir Hassan, Vineeta Kumari, Rashedul Hasan

School of Economics, Finance and Accounting

Research output: Contribution to journal › Article › peer-review

39 Citations (Scopus)

217 Downloads (Pure)

Abstract

We employ an event study method to examine the impacts of the collapse of a prominent tech industry bank, Silicon Valley Bank (SVB), on global stock markets. The collapse triggered panic and uncertainty, leading to significant negative returns worldwide. The magnitude of the impact was more pronounced within developed markets due to the higher level of integration and interdependence with the global economy, where we find significantly high abnormal volatility. Further, the impact of the SVB collapse was not uniform across all countries, and those with robust banking system development and stability were impacted differently.

Original language	English
Article number	104013
Number of pages	12
Journal	Finance Research Letters
Volume	55
Early online date	18 May 2023
DOIs	https://doi.org/10.1016/j.frl.2023.104013
Publication status	E-pub ahead of print - 18 May 2023

Bibliographical note

© 2023 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY license
(http://creativecommons.org/licenses/by/4.0/).

Keywords

Banking crisis
Banking system stability
Event study
Silicon Valley Bank
Volatility

ASJC Scopus subject areas

Finance

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10.1016/j.frl.2023.104013Licence: CC BY

PublishedFinal published version, 2.43 MBLicence: CC BY

Cite this

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title = "Repercussions of the Silicon Valley Bank collapse on global stock markets",

abstract = "We employ an event study method to examine the impacts of the collapse of a prominent tech industry bank, Silicon Valley Bank (SVB), on global stock markets. The collapse triggered panic and uncertainty, leading to significant negative returns worldwide. The magnitude of the impact was more pronounced within developed markets due to the higher level of integration and interdependence with the global economy, where we find significantly high abnormal volatility. Further, the impact of the SVB collapse was not uniform across all countries, and those with robust banking system development and stability were impacted differently.",

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Repercussions of the Silicon Valley Bank collapse on global stock markets

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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