✔️ Invest in Knowledge: ✔️ All Social Media Handles: ---------------------------------------------------------------------------------------------------------------- Kickstart your Investment Journey: ✔️Zerodha► ✔️Upstox► -------------------------------------------------------------------------------------------------------------- Secure your life and health ✔️Policy Bazaar: - Life Insurance► - Health Insurance► ✔️Ditto► Book a free consultation call with Ditto Insurance now: ____________________________________________________________________ Short-term investing options, 'Invoice Discounting' with the help of the TradeCred Platform : ✔️ TradeCred: What is covered? In today's video, we will understand the business model of SVB, the reasons of its collapse and the repercussions. 01:23 - What does the bank do? 06:02 - What went wrong with SVB 13:07 - What next? #RachanaRanade #ShareMarket #Siliconvalleybank...(read more)
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Silicon Valley Bank, once an iconic institution in the heart of the tech industry, saw its downfall in recent years, leaving many wondering how such a respected financial institution could crumble. The collapse of Silicon Valley Bank can be attributed to a combination of internal mismanagement, external economic factors, and a changing landscape within the technology sector. One of the main factors contributing to the collapse of Silicon Valley Bank was its exposure to risky loans and investments. As a bank focused on serving the technology and innovation sectors, Silicon Valley Bank had a large portfolio heavily reliant on startups and high-growth companies. While this strategy had paid off in the past, it proved to be a double-edged sword when the tech bubble burst in the early 2000s and again during the financial crisis of 2008. As these companies faced financial difficulties, Silicon Valley Bank saw its loan defaults spike, causing significant losses. Furthermore, the mismanagement of funds and lack of risk mitigation strategies further added to Silicon Valley Bank's downfall. The bank's leadership failed to adequately assess and manage the risks associated with their loan portfolio, leading to significant losses when these loans went sour. Additionally, insufficient diversification of investments meant that the bank was overly dependent on the success of the tech industry, leaving it vulnerable to any downturns in that sector. Another contributing factor to Silicon Valley Bank's collapse was the changing tech landscape. As the technology industry evolved, traditional banks entered the space, offering similar services tailored specifically for tech companies. This increased competition eroded Silicon Valley Bank's market share and put pressure on its profits. The bank struggled to adapt to these changes and failed to differentiate itself from new competitors, leading to a loss of customers and ultimately its demise. Finally, external economic factors played a role in Silicon Valley Bank's collapse. The global financial crisis of 2008 had far-reaching consequences for many financial institutions, and Silicon Valley Bank was no exception. The economic downturn resulted in reduced lending activity and a decline in the value of assets, putting additional strain on the bank's financial health. In conclusion, the collapse of Silicon Valley Bank can be attributed to a combination of internal mismanagement, external economic factors, and a changing landscape within the technology sector. The bank's exposure to risky loans and investments, along with inadequate risk management practices, led to significant losses. Additionally, increased competition from traditional banks and a failure to adapt to changing market dynamics further contributed to its downfall. Silicon Valley Bank's collapse serves as a cautionary tale for financial institutions and highlights the importance of strong risk management and adaptability in a rapidly changing industry. https://inflationprotection.org/the-collapse-of-silicon-valley-bank-a-closer-look-with-ca-rachana-ranade/?feed_id=125728&_unique_id=64d3a0400d38c #Inflation #Retirement #GoldIRA #Wealth #Investing #bank #bankcrisis #basicsofsharemarket #bbc #bondyield #Bonds #carachana #carachanaranade #CNBC #CNN #collapse #fed #financialcrisis #fundamentalanalysis #grahamstephan #IndvsAUS #jeromepowell #ManishSisodia #marketcrash #money #NarendraModi #NiftyCrash #PayTm #Rachana #RahulGandhi #RBI #runonthebank #sharemarket #sharemarketbasics #siliconvalley #siliconvalleybank #stockmarket #stockmarketbasics #svb #USbank #usfed #usmarket #VijayShekharSharma #BankFailures #bank #bankcrisis #basicsofsharemarket #bbc #bondyield #Bonds #carachana #carachanaranade #CNBC #CNN #collapse #fed #financialcrisis #fundamentalanalysis #grahamstephan #IndvsAUS #jeromepowell #ManishSisodia #marketcrash #money #NarendraModi #NiftyCrash #PayTm #Rachana #RahulGandhi #RBI #runonthebank #sharemarket #sharemarketbasics #siliconvalley #siliconvalleybank #stockmarket #stockmarketbasics #svb #USbank #usfed #usmarket #VijayShekharSharma
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