Silicon Valley Bank's Bankruptcy and Implications to China’s Scientific and Technological Innovation-Driven Small and Medium-sized Banks

摘要：On March 8, 2023, Silicon Valley Bank (SVB) of the United States announced a series of measures to supplement liquidity: 1) Sale of Available-for-Sale Securities (AFS): SVB planned to sell $21 billion in AFS and reallocate the proceeds to bonds with shorter durations to enhance its asset sensitivity, with the sale expected to result in a $1.8 billion after-tax loss for the bank; 2) Expansion of Term Borrowing: SVB aimed to increase its term borrowing from $15 billion at the end of 2022 to $30 billion to lock in financing costs, mitigate potential market volatility impacts on its funding sources, and provide more stable liquidity support for the company; 3) Refinancing to Address Losses and Provide Liquidity Support: SVB planned to raise $2.25 billion through refinancing strategies to cover potential losses and provide additional liquidity support, including $1.75 billion in common stock and $500 million in preferred stock.