Many banks ignore spectre of SVB in liquidity stress tests
In the ALM Benchmarking exercise, the majority of banks have no internal tests focusing on stress horizons of less than 30 days
This piece is part of a series benchmarking bank ALM practices. Risk Management subscribers can view selected cuts of the underlying data here.
When Silicon Valley Bank imploded in March 2023, it did so in the space of roughly 48 hours, after losing $40 billion of deposits in a single day. Most banks do not think the same could happen to them – or, at least, are not examining how they would cope.
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