Banking Sector: Reflections on SVB's downfall

Research date: 12/04/2023
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SVB’s downfall resulted from a multitude of issues including business concentration, executive risk-taking, and inadequate risk management. Banks in Vietnam have diversified funding sources; but they operate in a confidence-sensitive environment and small banks are most vulnerable to deposit runs. Regulatory support is critical to instill stability in the banking system. Asset risks are more considerable for banks with significant exposure to real estate and low loan loss coverage.

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