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RegulationsFebruary 26

Uninsured deposits could pose a threat to financial stability

Nearly a year on from SVB’s demise, regulators are still asking whether deposit insurance schemes are fit for purpose
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Uninsured deposits could pose a threat to financial stabilityImage: David Paul Morris/Bloomberg

The failure of Silicon Valley Bank in March 2023 has been described as a textbook case of a bank run.

While bank runs have always been a feature of banking history, SVB’s case brought into focus how highly concentrated business models and overreliance on uninsured deposits in banking can pose risks to financial stability.

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Barbara Pianese is the Latin America editor at The Banker. She joined from Mergermarket, where she spent four years covering mergers and acquisitions across Europe with a focus on the consumer sector. She holds an MA in International and Diplomatic Affairs from the University of Bologna having studied in Brazil and France as well.
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