The recent collapse of Silicon Valley Bank (SVB) – the failure of the biggest US lender since the 2008 global financial crisis – has created waves across the global banking system. The subsequent collapse of another US institution, Signature Bank, the US$30 billion (£24.5 billion) lifeline given to First Republic Bank and the latest turmoil affecting Credit Suisse has dragged down European bank stocks.
While the Swiss bank was rescued by its competitor and markets are starting to recover, it too early to say whether when or how recent nerves about the global banking sector might end. But no matter when the US bank failures and European bank panic end up, some lessons must be learned in the UK. In particular, increasing corporate governance and corporate social responsibility (CSR) requirements could help ease future banking failures.
