The failure of Silicon Valley Bank (SVB) in March 2023 marked a significant event in the US banking system, becoming the second-largest bank failure in nominal terms. SVB's collapse was driven by a combination of poor risk management, regulatory changes, weak oversight, and a highly concentrated customer base in the tech industry. The bank's unique position, with 94% of its deposits uninsured, made it particularly vulnerable to runs. The failure of SVB triggered a broader panic, leading to the failure of other banks and the introduction of emergency measures by the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve. These measures included invoking the "systemic-risk exception" and creating the Bank Term Funding Program, which allowed banks to borrow from the Fed at full value for government securities. Despite these interventions, the underlying solvency concerns in the banking system remained, and the panic spread to Europe, contributing to the failure of Credit Suisse. The SVB failure highlights the importance of managing interest-rate risk and the role of deposit insurance in maintaining financial stability. The regulatory and supervisory responses to the crisis also came under scrutiny, with calls for more stringent standards and better enforcement.The failure of Silicon Valley Bank (SVB) in March 2023 marked a significant event in the US banking system, becoming the second-largest bank failure in nominal terms. SVB's collapse was driven by a combination of poor risk management, regulatory changes, weak oversight, and a highly concentrated customer base in the tech industry. The bank's unique position, with 94% of its deposits uninsured, made it particularly vulnerable to runs. The failure of SVB triggered a broader panic, leading to the failure of other banks and the introduction of emergency measures by the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve. These measures included invoking the "systemic-risk exception" and creating the Bank Term Funding Program, which allowed banks to borrow from the Fed at full value for government securities. Despite these interventions, the underlying solvency concerns in the banking system remained, and the panic spread to Europe, contributing to the failure of Credit Suisse. The SVB failure highlights the importance of managing interest-rate risk and the role of deposit insurance in maintaining financial stability. The regulatory and supervisory responses to the crisis also came under scrutiny, with calls for more stringent standards and better enforcement.