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17 octobre 2023
- handle: 10670/1.xtn4q3
- hal: hal-04414073
- doi: 10.2139/ssrn.4413287
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info:eu-repo/semantics/altIdentifier/doi/10.2139/ssrn.4413287
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Mots-clés
Saving glut; Silicon Valley Bank; Deposits; Financial stability; Wealth inequality; Intangibles E - Macroeconomics and Monetary Economics/E.E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy/E.E2.E22 - Investment • Capital • Intangible Capital • Capacity G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G21 - Banks • Depository Institutions • Micro Finance Institutions • MortgagesSujets proches
Fortunes Riches Affluence Distribution of wealth Silicium Social inequality Social equality Inequality EgalitarianismCiter ce document
Guillaume Vuillemey, « From the Saving Glut to Financial Instability: Evidence from the Silicon Valley Bank Failure », HAL-SHS : économie et finance, ID : 10.2139/ssrn.4413287
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Résumé
I show that the saving glut spurs banking instability. In the US, banks locally exposed to its root causes -- higher savings by intangible-intensive firms and the rise in household wealth inequality -- massively increased deposits since 2000, leading to an unprecedented deposit-to-GDP ratio and to a surge in uninsured deposits. To causally identify an impact of this ``deposit glut'' on financial instability, I use the unexpected failure of Silicon Valley Bank in March 2023 as a quasi-natural experiment: other US banks with high local exposure to either intangible-intensive firms or wealth inequality experienced significantly larger drops in market valuation.