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The interaction of bank leverage, interest-rate risk, and runnable funding

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  • Shawn Kimble
  • Matthew P. Seay

Abstract

Silicon Valley Bank (SVB), Signature Bank, First Republic Bank (FRC) had too little useable liquidity relative to their runnable funding and too little capital given the magnitude of their interest rate risk. The mismanagement of these vulnerabilities ultimately contributed to a loss of confidence in their business models.

Suggested Citation

  • Shawn Kimble & Matthew P. Seay, 2024. "The interaction of bank leverage, interest-rate risk, and runnable funding," FEDS Notes 2024-08-30-2, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgfn:2024-08-30-2
    DOI: 10.17016/2380-7172.3605
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