Yousaf, I., Riaz, Y. and Goodell, J. W. (2023) The impact of the SVB collapse on global financial markets: Substantial but narrow. Finance Research Letters. 55(B) 1544-6123.
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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.
Uncontrolled Keywords:
Silicon Valley Bank, Bank run, Global financial markets, Event study, Contagion
Creators:
Yousaf, I., Riaz, Y. and Goodell, J. W.
Faculties, Divisions and Institutes:
Date:
9 June 2023
Date Type:
Publication
Journal or Publication Title:
Finance Research Letters
Volume:
55
Number:
B
Number of Pages:
289621
Language:
English
ISSN:
1544-6123
Status:
Published / Disseminated
Refereed:
Yes
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