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

Imran Yousaf, Yasir Riaz and John W. Goodell

Finance Research Letters, 2023, vol. 55, issue PB

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.

Keywords: Silicon Valley Bank; Bank run; Global financial markets; Event study; Contagion (search for similar items in EconPapers)
JEL-codes: G01 G14 G15 G21 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:55:y:2023:i:pb:s1544612323003203

DOI: 10.1016/j.frl.2023.103948

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