Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/315942 
Year of Publication: 
2025
Series/Report no.: 
Working Paper No. WP 2025-04
Publisher: 
Federal Reserve Bank of Chicago, Chicago, IL
Abstract: 
This article critically reviews the 2023 banking crisis with the benefit of two years of hindsight. We highlight seven facts that depart from the standard account of the crisis that has developed. We describe the crisis as a reaction to bank business models that focused on providing banking services to certain economic sectors, crypto-asset firms and venture capital, that had come under economic pressure during the preceding year. We argue this view of the crisis provides a more precise explanation of which banks were affected compared to an explanation focused solely on banks' balance sheet metrics. We also argue that this view of the crisis has different policy implications, more focused on surveilling bank business models and institutional depositors.
Subjects: 
Banking Crisis of 2023
business model risk
Silicon Valley Bank
uninsured deposits
unrealized losses
JEL: 
G01
G21
G28
H12
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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