The recent failures of Silicon Valley Bank (SVB) and First Republic Bank spurred concern among industry and regulatory leaders about the health of the overall banking industry. Certainly, investigating the reasons leading to their collapse is important to prevent it from becoming a larger trend, notes KevinMD.com.
The reason to prevent future losses of similar banks, however, has microeconomic impacts that go beyond the dollars-and-cents and market-confidence impacts the banking and investment community are most concerned about.
One specific concern is that startups may be reluctant to seek relationships with banks similar to SVB and First Republic due to worries over future failures and loss of capital.
Even with the recent bank losses, there are still other similar smaller institutions serving IT and digital health startups. Read more.
