Reflecting on the Silicon Valley Bank failure earlier this year, Viral Acharya & Raghuram Rajan note that banks' uninsured deposits are ⬆️ prone to runs due to four reasons including the Quantitative Easing policy.
On #InternationalDayofBanks, read more from the #I4IArchives: https://ideasforindia.in/topics/money-finance/bank-failures-what-s-the-fed-s-role.html
On #InternationalDayofBanks, read more from the #I4IArchives: https://ideasforindia.in/topics/money-finance/bank-failures-what-s-the-fed-s-role.html
Ideas For India
Bank failures: what’s the Fed’s role?
Silicon Valley Bank is the largest bank failure in the US since the 2008 financial crisis. Viral Acharya and Raghuram Rajan reflect on this and attribute the bank’s collapse to more than bankers’ mismanagement. They outline the systemic monetary policy drivers…