Currently, global banking is being shocked by the news that several banks in the United States are experiencing bankruptcy. It started with the collapse of Silicon Valley Bank (SVB) on Friday (10/3/2023) morning, United States time. The collapse of this bank shocked the public because it happened only 48 hours after announcing the capital crisis. Not only that, within two days, news emerged of the collapse of banks in the United States, namely Signature Bank and Silvergate Bank.According to several sources, one of the main causes of the collapse of Silicon Valley Bank (SVB) was the policy of the United States Central Bank, in which the Federal Reserve has raised interest rates from their lowest record since 2022 in an effort to suppress inflation. This is what then causes investors to be afraid to take risks where the available cash currency becomes expensive due to high interest rates.Silicon Valley Bank (SVB) itself was declared to have collapsed after experiencing bank runs, where its customers withdrew their deposits on a large scale on Friday (10/3/2023) and ultimately failed to get capital injections and also withdraw funds from customers and investors. Apart from that, one of the causes of the collapse of Silicon Valley Bank (SVB) was giving too many loans or credit to startup companies whose performance had been deteriorating in recent times. As a result this Silicon Valley Bank (SVB) went bankrupt within 48 hours of planning to raise funds ofUS$ 2.25 billion or equivalent to Rp. 34.75 trillion to increase capital on Wednesday (8/3/2023).
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