Apart from these lessons, the failure of SVB also raises four questions. One: are there shortcomings in the way we handle interest rate risk? In Europe, the Basel standards for interest rate risk have been introduced under the institution-specific Pillar 2 requirements, and they apply to all banks.
The recent turmoil underlines the importance of this regulation, as well as the need for continued vigilance. 2/5  BIS - Central bankers' speeches  And that brings me to the second question: are our current assumptions about customer behaviour and deposit duration conservative enough in today's digital world?