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

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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20605:62384
20605:62385

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20605:62384

SVB 15.04.2023
SVB_15.04.2023.pdf

20605:62385

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Yousaf_etal_2023_The_impact_of_the_SVB_collapse_on_global_financial_markets_Substantial_but_narrow.pdf - Accepted Version
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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:

Faculties > Faculty of Business & Law > Accounting & Finance

Date:

9 June 2023

Date Type:

Publication

Journal or Publication Title:

Finance Research Letters

Volume:

Number:

Number of Pages:

Language:

English

ISSN:

1544-6123

Status:

Published / Disseminated

Refereed:

Yes