In the US, the bank run on Silicon Valley Bank (SVB) has sparked concerns about the health of banks around the world. The SVB had profitably invested the deposits of its mostly corporate customers in bonds. As interest rates rose, startup clients needed their money. They withdrew billions from the SVB. In order to finance the outflows, the SVB had to sell their Oblis at the dumbest moment. Because of the turnaround in interest rates, the paper had lost value.
The US government stepped in at the weekend and put together a rescue package. To put it simply, the bank was not saved, but corporate customers should get their full deposits back.
