The impact of the SVB collapse on global financial markets: Substantial but narrow

Document Type

Article

Publication Date

7-1-2023

Abstract

We investigate the impact of the collapse of Silicon Valley Bank on global financial markets, identifying significant but narrow impacts. Abnormal returns are significant and negative for US equities, global banks, Bitcoin, as well as GCC equities. However, abnormal returns are insignificant for most fiat currencies, metals, and energy markets. That the SVB collapse had minimal effects on these markets suggests that the SVB event had a major but constrained effect on the global financial system, affecting significantly a small number of markets while largely ignoring others. Results highlight possible contagion points with regard to reactions to banking stress.

Publication Title

Finance Research Letters

DOI

10.1016/j.frl.2023.103948

This document is currently not available here.

Share

COinS