So, SVB’s collapse has got everyone talking, right? But you’re probably wondering why we should even care. Well, understanding the banking crisis can help savvy investors like us spot similar issues in other financial institutions and protect our investments better. Now, why does SVB’s failure affect us as investors, and what opportunities could come out of it? Let me break it down for you. What went wrong? SVB was a major tech-focused bank in the United States, lending to tech companies. But they also lent money to riskier borrowers – think startups, venture capitalists, and cryptocurrency companies. When the economy slowed down, some of these borrowers started struggling, and SVB found itself facing two big problems:

• Low Capital: Not enough money to cover loans if they went bad.
• Low Liquidity: Not enough cash to pay back depositors if they wanted their money back.

So, people lost trust in SVB and started pulling their money out. And we all know what...