The March 2023 Bank Interventions in Long-Run Context – Silicon Valley Bank and Beyond

9 Pages Posted: 10 Apr 2023

See all articles by Andrew Metrick

Andrew Metrick

Yale School of Management; National Bureau of Economic Research (NBER); Yale University - Yale Program on Financial Stability

Paul Schmelzing

Boston College - Department of Finance; Stanford University - Hoover Institution

Multiple version iconThere are 2 versions of this paper

Date Written: March 22, 2023

Abstract

U.S. and European banking institutions were hit by a wave of distress in March 2023. Policymakers on both sides of the Atlantic reacted with an array of interventions, some targeting individual institutions, others designed to shore up the banking sector as a whole. This paper contextualizes events using a new long-run database on banking-sector policy interventions over the last eight centuries. On that basis, recent actions have already been unusual in their policy mix and size – in the database, the vast majority of events with the same pattern of interventions ultimately evolved into “systemic” bank-distress episodes.

Keywords: financial crises, emergency lending, deposit insurance, bank run

JEL Classification: G01

Suggested Citation

Metrick, Andrew and Schmelzing, Paul, The March 2023 Bank Interventions in Long-Run Context – Silicon Valley Bank and Beyond (March 22, 2023). Available at SSRN: https://ssrn.com/abstract=4397413 or http://dx.doi.org/10.2139/ssrn.4397413

Andrew Metrick (Contact Author)

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HOME PAGE: http://faculty.som.yale.edu/andrewmetrick/

National Bureau of Economic Research (NBER) ( email )

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Yale University - Yale Program on Financial Stability

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Paul Schmelzing

Boston College - Department of Finance ( email )

Carroll School of Management
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United States

Stanford University - Hoover Institution ( email )

Stanford, CA 94305
United States

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