The Collapse of Credit Suisse and Silicon Valley Bank: A Reckoning Moment for the Banking Sector?

The phrase "The writing is on the wall" means a looming disaster. It has an interesting genesis from the Babylonian kingdom of yore. It was a story of leadership missteps, immorality, and breakdown of rules.

- Jennifer Paldano Goonewardane.

Examining the 2023 banking crisis propelled by the collapse of Credit Suisse and Silicon Valley Bank reflects similar stories of poor leadership and judgment, leading to one of the worst collapses in modern banking history since the 2008 financial crisis. Could the be-all and end-all of prioritizing profits be the bane of the banking sector, where that very culture undermines the importance of honesty and credibility?

That reputation is cursory is a fact. Even the oldest institutions in the business world are not foolproof. Despite good standing, they digress and err. The most trusted institutions people choose to safeguard their money may be their nemesis. The recent banking sector collapses brought two big economies to their knees. The uncertainty and exposures highlighted by these collapses demonstrated a culture of financial impunity with which banks operate even under the regulatory radar.