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On March 10, local time, the Silicon Valley Bank in the United States suddenly closed down.This has caused the US and even global financial markets to be in a huge panic.The current turbulent situation in the US financial market is easy to reminiscent of Lehman brothers, one of the largest investment banks in Wall Street, one of the largest investment banks in Wall Street, and pushed the subprime mortgage crisis to a climax.

Information shows that Silicon Valley Bank is a medium -sized bank that focuses on financing for startups with asset size exceeding US $ 200 billion, ranking 16 in American banks.Due to the liquidity crisis, the company recently announced a financing plan, which triggered market panic. The company's stock price plummeted by more than 60%on the day, and triggered a sharp decline in U.S. banks, which led to the recent plunge in the US stock market.

With the bankruptcy of Silicon Valley Bank, it may affect the outbreak of systemic risk incidents of banks and finance. More small and medium banks may not debt, and Silicon Valley's scientific and technological innovation ecosystem may be intensified.All of this trigger the US government's guesses and disputes on whether they are shot and how to make a shot.

The US inflation rate is high, and the US Federal Reserve's interest rate hike policy has slowed down in the short term, which means that the assets such as bonds held by banks will continue to shrink, and the potential system risks of banks are accumulating.In the next week, the possibility of the risk of black swan incidents in the financial market risks.In the end, as the market expected, the US regulatory agency decided to take a shot.

The Fed's official website issued two announcements on March 12, local time, which are joint announcements of the US MinistryArrangement of Program, BTFP).The announcement mentioned the decision -making process: After receiving the proposal from the FDIC and the Federal Reserve's board of directors, U.S. Finance Minister Yellen approved the FDIC to fully protect all the depositors and complete the resolution on Silicon Valley banks in the way of fully protecting all deposits.action.

According to the announcement, starting from March 13, the Silicon Valley Bank's reserves will be able to use all their funds.In addition, the Federal Reserve said in the aforementioned statement that the US regulatory layer is formulating a new bank regular financing plan (BTFP) to protect institutions affected by the closure of Silicon Valley.Through BTFP, the Fed will provide banks, savings associations, credit cooperatives, and other institutions for the longest one year loan. They need high -quality mortgage, such as US Treasury, institutional debt and mortgage loans to support securities.Through BTFP, the Fed does not pay attention to the market value of the collateral, and banks can borrow funds equal to the face value of the collateral.In addition, banks do not have to pledge the mortgage of their loans.

The Fed said that BTFP will provide extra liquidity sources for high -quality securities, which can eliminate the necessity of quickly selling securities when facing pressure.

Protection of storeders

This is essential for related institutions in the crisis.Federal data shows that as of the end of last year, all American banks' unrealized losses for sale and holding to the expired investment portfolio were US $ 620 billion (about S $ 827.6 billion).Although officials from the US Treasury have repeatedly stated that their initiatives ensure that "the (crisis) companies have not been rescued, but stores are protected", from the perspective of BTFP arrangements, companies in crisis are still rescued.

It should be said that this is the best case of the United States' risk incidents in the United States in recent years.From the beginning of taking over, bankruptcy, FDIC intervention, and $ 250,000 deposit limit insurance, to the current full bottom and BTFP, you can feel the timeliness and flexibility of the risk disposal of the US Ministry of Finance, the Federal Reserve and FDIC.

But we should also see the harm that this rescue behavior may bring.The specific manifestation of this hazard is: it will give the market an illusion and eventually pay for it.First of all, this kind of rescue behavior will indulge the speculators again.Because they are expected, the government will not let them fall, and the government will pull them up when they fall into mud.Therefore, they can continue to play with the tricks that have been played with before, that is, the profits of the speculators are often privatized, but the loss must be borne by society.What is more important is that it also gives other speculators a bad example.

In other words, the way to make credit more easily obtained through the name of the country to prevent the crisis from occurring and spreading, which is equivalent to providing some final guarantees to the corresponding interests of Silicon Valley Bank.This is likely to bring huge moral risks to the market.Because of those non -controlling greedy and light behaviors, it should have been punished, and market economic law has always been the case.If they are not punished, they will only be sympathetic and helped by the government in disguise, which will only mislead the market and lead to more and larger Silicon Valley bank crises.Because speculators judge, no matter how they make trouble, the government will save them in the end.Based on this, the attitude of "Laissez Faire" is the most appropriate method for the current Silicon Valley bank crisis.

The author is a Chinese economist and a financial columnist

The way to make credit more easily obtained through the name of the country to prevent the crisis from occurring and spreading, which is equivalent to providing some final guarantees to the corresponding interests of Silicon Valley Bank.This is likely to bring huge moral risks to the market.