Business Standard

Beyond the Big Bank Theory: SVB collapse shows need for regulatory scrutiny

SVB now threatens the start-up ecosystem, which is already in the throes of a funding winter due to raising interest rates

SVB, Silicon valley bank
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Raghu Mohan New Delhi
A chain is only as strong as its weakest link. The message that comes across from the dramatic collapse of the Silicon Valley Bank (SVB), and Signature Bank, is that new risks are coming to the fore in an increasingly interconnected world; and the idea of systemically important institutions may have to be rethought. SVB now threatens the start-up ecosystem, which is already in the throes of a funding winter due to raising interest rates, the tightening of the regulatory framework and the resultant question marks on many of their business models.

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