Reminiscences of a Banker Who Saw Fragility of Banks

RECENTLY MEDIA HEADLINES were agog with the demise of the Silicon Valley Bank (SVB). Without going into the history of why this happened, and how it could have been avoided, I would like to make a case for the need for such an institution.

- Shyam Maheshwari

Paradoxically, only 10 days ago, when asked where I see opportunities in Asia, I had suggested to someone that there was a need for an Asian version of the Silicon Valley Bank. Obviously, since SVB’s demise, the sarcastic emojis I received from him on WhatsApp was understandable. It is ironic that the inspiration of my suggestion has become desperation for the customers for whom SVB was founded.

Having lived through the demise of my first employer, Lehman Brothers, I can empathise with employees, customers, depositors and vendors of SVB. Getting emails on updates on funding situations of portfolio companies from venture funds shows the widespread influence of SVB. It may feel like desperation and exasperation today, but it is also a testimony of the deep impact SVB has on the startup ecosystem.