Journal Article

Federal Reserve: Central Bank Lending Lessons from the 2023 Bank Crisis

Abstract: In the spring of 2023, a pair of fast-moving bank runs threatened to spark a widespread financial panic. On March 9, the 16th largest bank in the country, Silicon Valley Bank (SVB) in Santa Clara, Calif., lost a quarter of its deposits in a single day. It was set to lose another 62 percent of deposits the following day before it was closed by regulators. On March 10, New York-based Signature Bank experienced a similarly rapid flight of 20 percent of its deposits. It was closed by regulators on March 12.

Keywords: central bank; Silicon Valley Bank; bank failures; lender of last resort;

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Econ Focus

Publication Date: 2024-08-13

Volume: 24

Issue: 3Q

Pages: 4-7