Repercussions of the Silicon Valley Bank collapse on global stock markets

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

Research output: Contribution to journalArticlepeer-review

20 Citations (Scopus)
107 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 languageEnglish
Article number104013
Number of pages12
JournalFinance Research Letters
Volume55
Early online date18 May 2023
DOIs
Publication statusE-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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