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Case Study: The 2023 US Regional Banking Crisis, A Systemic Risk Post Mortem

An advanced post-mortem for macro-focused investors, fund managers and senior finance professionals on the fastest bank failures in US history. In March 2023 Silicon Valley Bank lost $42 billion of deposits in a single day and was shut the next morning, Signature Bank followed within 48 hours, Credit Suisse was forced into a takeover by UBS a week later, and First Republic was seized and sold to JPMorgan in May. Start with how a bank balance sheet carries interest rate risk, and how held-to-maturity accounting kept large unrealised bond losses out of reported capital. Follow the pandemic deposit flood, the long-bond bets it funded and the 2022 Fed tightening that turned those bets into a hole. Rebuild SVB's losses from its own disclosures with duration maths, then trace the contagion through Signature, the systemic risk exception, the Bank Term Funding Program, the Credit Suisse AT1 write-down and First Republic's slow collapse. Read what the regulators admitted went wrong and what the reform agenda changed. Close by comparing the US set-up with RBI's investment portfolio norms, liquidity rules and DICGC deposit cover, the Indian parallels of Yes Bank, PMC Bank and Lakshmi Vilas Bank, and a practical checklist for screening Indian bank stocks for rate and run risk.

Bank Balance SheetsInterest Rate RiskHTM and AFS AccountingDuration MismatchUninsured DepositsBank RunsDeposit InsuranceAT1 BondsLender of Last ResortBank RegulationSystemic RiskIndian Banking Sector
MODULES
6
DURATION
~4 hrs
TRACK
Macro & Markets

What You'll Master

How a bank's assets, deposits and capital fit together, and where interest rate risk sits in the banking book
How held-to-maturity accounting let unrealised bond losses stay out of reported capital, and how to find them in the notes
How the pandemic deposit surge and the 2022 Fed hiking cycle turned long-duration securities into a solvency problem
How concentrated, uninsured and digitally mobile deposits made SVB's run faster than any in history
How to estimate a bank's mark-to-market loss from its own disclosures using duration
How the systemic risk exception, the BTFP, the Credit Suisse AT1 write-down and the First Republic sale contained or spread the panic
How India's bank regulation and DICGC cover compare, and which signals to check before owning an Indian bank stock
Access Level
LEARNER
Everything included
Full Text Playbooks
Actionable Exercises
Mobile Reading Mode
Lifetime Updates

Curriculum Breakdown