Bank Liquidity and Asset Management: The Silicon Valley Bank case

In this case, the participants take on the role of a bank with the objective of understanding why certain banks, such as the Silicon Valley Bank (SVB), have experienced collapses. The first step involves analyzing different values and ratios to assess SVB's return and risk. Next, the value of bonds is estimated based on the discounting of future cash flows to understand the impact of rising interest rates. In the third step, various methods are explored for managing deposit outflows. Finally, the lessons from the SVB case are identified. The objective of this case is to comprehend the important aspects of asset and liquidity management for banks during periods of rising interest rates.

To make a financial analysis of a bank
To assess the risks faced by banks
To develop analytical and synthesis skills
To learn to collaborate in a team
To examine the governance and internal controls

Banks, Financial Institutions, Bonds, Risk, Capital Adequacy Ratio, Risk Weighted Assets, Collapse, Bank run, Asset Managemen, Liquidity Management

The participants concerned are master students who specialize in the field of banking and finance at university, in management school or in engineering school but also people wishing to learn about banking finance and market finance.

Central banking

Duration: 4 hours 30 min. Solution to be projected to the students (Powerpoint slides), a Word study file for students and 1 Excel file are provided.

Année de la problématique : 2023

Livraison : Livraison par lien de téléchargement

Nombre de pages : 21