The Silicon Valley Bank collapse: Prudential regulation lessons for Europe and the world
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VoxEU Column
Financial Regulation and Banking
Mathias Dewatripont
Peter Praet
Andre Sapir
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While the collapse of Silicon Valley Bank appears to be an example of failure of both bank management and supervision, it also offers insights about prudential regulation. This column draws two main lessons in this respect. The first is that the episode should increase the resolve of public authorities to further improve the resolution framework in the EU. The second is that the extent of protection, in both Europe and worldwide, of short-term deposits that (large and small) companies rely upon for their ordinary business is flawed and needs to be adapted.
Authors
Mathias Dewatripont
Peter Praet
Andre Sapir
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VoxEU Column. Financial Regulation and Banking. Mathias Dewatripont. Peter Praet. Andre Sapir. / While the collapse of Silicon Valley Bank appears to be an example of failure of both bank management and supervision, it also offers insights about prudential regulation. This column draws two main lessons in this respect. The first is that the episode should increase the resolve of public authorities to further improve the resolution framework in the EU. The second is that the extent of protection, in both Europe and worldwide, of short-term deposits that (large and small) companies rely upon for their ordinary business is flawed and needs to be adapted. Authors. Mathias Dewatripont. Peter Praet. Andre Sapir. Share. Twitter. Facebook. LinkedIn.