Perspective of current Affairs
Since the Radio Interest of the Federal Federal Reserve has launched the Silicon Valley Bank, Silicon Valley has become the first U.S. Federal Deposit Insurance Corporation (FDIC) underwriting agency.However, the first bankruptcy FDIC underwriting agency was Almena State Bank, which was closed on October 23, 2020.
When the State Bank of Almea was closed, it felt that the impact was not so great, and the attention was not high.The reason may be that Silicon Valley Bank is a bank with the word "Silicon Valley".Silicon Valley is a global recognized entrepreneurial center and innovation center. It is a place full of vitality and vitality. Bank bankruptcy occurs. How can we not pay attention and worry about the outside world?
Since the bankruptcy of Silicon Valley Bank has become a fact and is facing a severe situation in the world economy, the United States has suffered severe pressure in inflation.Brothers, triggers global financial tsunami, thus bringing new disasters and worsening the world economy.
From the reasons for the bankruptcy of Silicon Valley Bank, although it is also caused by capital crowding, it is caused by serious insufficient cash flow, but it is different from the situation of the Lehman brothers.As a century -old store, the Lehman brothers should have experience in control and more capable of resolving risks. However, the accumulated contradictions, especially the large -scale use of subprime loans, have caused banks to be in trouble and eventually bankrupt.
Silicon Valley Bank is different. As an institution that does not have a long history, mainly serves entrepreneurs and innovative enterprises, the sensitivity to the industry's prosperity and the depression cycle is much higher than the Lehman brothers.Lehman Brothers.Because of this, the impact and impact of bankruptcy on the entire financial field must be weaker than the Lehman brothers.Naturally, the probability of triggering the global financial tsunami is much smaller.
Does this mean that the bankruptcy of Silicon Valley Bank will not affect the global financial market?Or is it small?Obviously not.From the current situation, the impact may be mainly manifested in three aspects: one is that the impact on small and medium -sized banks in the United States will have a great impact;The development has a great impact.
First look at the first point. Silicon Valley Bank, founded in 1983, was positioned in the beginning of serving entrepreneurs and startups. It was also considered to be the gold master and lifeblood of the startup.On the occasion of development, it quickly opened a new way with low interest rate fundraising and small and medium -sized enterprises that has not paid attention to large banks, and successfully helped star companies such as Facebook and Twitter. While being widely respected by entrepreneurs, it also allowed the outside worldThe bank's praise is like a tide, thinking that Silicon Valley Bank has a strong ability to seize the opportunity.
It is precisely this advantage that will also become the disadvantage of development and make it too high to dependence on the external environment.Because the starting enterprise's ability to resist risks is not strong, once the external environment changes, it will have a great impact on the startup, which will eventually affect the survival of Silicon Valley Bank.Economic discharge, inflation, interest rate hikes, scientific and technological warfare, trade war, etc., all of this has become the last straw that crushes Silicon Valley Bank.
Silicon Valley Bank is not strong in the choice of entrepreneurs, and it is also a relatively prominent problem.For example, the support of the encryption company is actually a huge hidden danger of accumulating risks.As a small and medium -sized bank, Silicon Valley Bank will inevitably cause the outside world to worry about the anti -risk capabilities of small and medium -sized banks, which will affect the survival and development of small and medium -sized banks in the United States.
Looking at the psychological impact of entrepreneurs, in the face of Silicon Valley Bank's sudden bankruptcy, the funds of many entrepreneurs and startups are also stored in the bank, ranging from hundreds of thousands of dollars, and more than hundreds of millions of dollars.For example, ROKU, a streaming media technology company, disclosed in a document submitted to the US Securities and Exchange Commission that the company holds nearly $ 500 million in cash in Silicon Valley Bank, accounting for more than a quarter of the cash flow ratio.This is undoubtedly fatal for companies.Roblox, the "First Stock of the Universe" game company, also said in a document that 5%of its $ 3 billion in cash has Silicon Valley Bank.Even if it does not pose a fatal threat to the company, it will affect the trust of entrepreneurs and startups to banks.
In addition to the above two aspects, the bankruptcy of Silicon Valley Bank will also affect the choice of banks and entrepreneurs in the future. They have poor anti -risk capabilities and require banks to better support and cooperate.Once the funds stored in the bank are lost, there will be serious problems in survival.The bankruptcy of Silicon Valley Bank will affect their re -selection of large financial institutions to avoid risks.The problem is that big banks are not willing to support entrepreneurs and startups.Therefore, bankruptcy incidents will also adversely affect future entrepreneurs and startups' support from banks.
The author is Chinese Financial Reviewer
The bankruptcy of Silicon Valley Bank will affect the choice of banks and entrepreneurs in the future. They have poor anti -risk capabilities, and they need better support and cooperation of banks.Once the funds stored in the bank are lost, there will be serious problems in survival.The bankruptcy of Silicon Valley Bank will affect their re -selection of large financial institutions to avoid risks.The problem is that big banks are not willing to support entrepreneurs and startups.
