HK Highlights 1 - Digital Magazine Version - Flipbook - Page 10
HALSEYKEETCH.COM
BANK BANKRUPTCIES
Higher rates brought about the
demise of some major US and European
昀椀nancial institutions, demonstrating
the importance of prudential regulations
introduced after the Global Financial
Crisis that were ill-advisedly loosened
during the Trump presidency. Silicon
Valley Bank and Signature Bank - two
major supporters of the venture capital
industry - both collapsed and were
latterly acquired by other organisations
with US government support, whilst
in Europe, Credit Suisse was the
major story.
The Swiss 昀椀rm had been struck by one
risk management or regulatory issue
after another in recent years and
eventually went under in March. A
Swiss government-backed rescue by
its arch-rival, UBS, was hastily arranged.
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HK HIGHLIGHTS
To many risk management specialists,
the link between the lack of suf昀椀cient
governance in these institutions was
obvious, although these unfortunate 昀椀rms
were also victims of ‘emerging risks’, such
as the lightning-fast, tech-enabled ‘bank
run’ that sank SVB. Prudential regulators
and FIG investors are sure to act this
year on lessons learnt, whilst banking
industry INEDs will doubtless be
reviewing and upgrading controls
and governance at their 昀椀rms to stand
the best chance of avoiding such
issues in years to come.