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Posted on April 3rd, 2023 in Announcements, Article, Community Engagement, Faculty, Media, Publication, Research by David E. Hoegberg

Silicon Valley Bank and Signature Bank failed with enormous speed – so quickly that they could be textbook cases of classic bank runs, in which too many depositors withdraw their funds from a bank at the same time. The failures at SVB and Signature were two of the three biggest in U.S. banking history, following the collapse of Washington Mutual in 2008. How could this happen when the banking industry has been sitting on record levels of excess reserves – or the amount of cash held beyond what regulators require? Vidhura Tennekoon, an Assistant Professor of Economics in the IU School of Liberal Arts at IUPUI, has explained in an article published in The Conversation how interest rate risk and liquidity risk have interacted to produce these failures. The article, “Why SVB and Signature Bank Failed so fast – and the US banking crisis isn’t over yet,” and its official Spanish translation have been reposted in over 50 local, national and international outlets such as PBS and NDTV, India. It has also been translated into many additional languages.