MIT Golub Center for Finance and Policy
Public Policy
Duration Gap Disclosure: A Modest Proposal to Prevent Another SVB
By
Silicon Valley Bank (SVB) failed in March 2023. Three prominent economists affiliated with the Golub Center discussed their ideas of what happened and what’s next immediately following SVB’s demise. Now, Edward Golding and Deborah Lucas discuss a simple policy change that relies primarily on market discipline that would reduce the likelihood of future SVBs. (Views are those of the authors and not those of the MIT Golub Center for Finance and Policy.) Read the full article here.
Click here to read an expanded version recently published in American Banker.