banking run

On March 16th, US Treasury Secretary Yellen said that banks in Silicon Valley had encountered a run, leading to liquidity problems; Silicon Valley banks have to sell assets, including treasury bond that have lost market value; What happened at the Bank of Silicon Valley will be carefully investigated. US Treasury Secretary Yellen: Will Carefully Investigate the Bankruptcy of Silicon Valley Banks Analysis based on this information:The recent announcement from US Treasury Secretary Yellen reveals that banks in Silicon Valley are encountering a run, which has led to liquidity problems. This situation has forced the banks in the region to sell assets, including treasury bonds that have lost market value. This revelation is concerning for several reasons. Firstly, a banking run can trigger a serious financial crisis that can have far-reaching consequences for the economy. When depositors start withdrawing their funds at a faster rate than banks can cover, it creates a domino effect that can lead to bank failures. This,…