US bank collapse: Should Australia be worried?

California-based Silicon Valley Bank (SVB) dramatically collapsed following a customer run on its deposit base last week, marking the second-biggest collapse of a financial institution in US history since the fall of Washington Mutual at the height of the global financial crisis. Is this the start of a new banking or financial crisis? Govindarajan Appu, a columnist on economics, a certified public accountant, and an associated chartered accountant in Perth, explains about US Bank Collapse and what it means for Australian economy.

SVB came under extreme liquidity pressure following the release of its full-year accounts in late February where it reported sharp falls in the market value of its investment portfolios. Credit: Jeff Chiu/AP. Inset:Appu Govindarajan

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