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Growing Science » Decision Science Letters » What really drove Silicon Valley and First Republic Bank bankruptcy?

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Decision Science Letters

ISSN 1929-5812 (Online) - ISSN 1929-5804 (Print)
Quarterly Publication
Volume 14 Issue 1 pp. 205-212 , 2025

What really drove Silicon Valley and First Republic Bank bankruptcy? Pages 205-212 Right click to download the paper Download PDF

Authors: Jorge Guillen

DOI: 10.5267/j.dsl.2024.9.006

Keywords: DEA, Silicon Valley Bank, CAMEL Model

Abstract: This paper analyses the possible determinants that induced Silicon Valley and First Republic Bank to Bankruptcy. We employ financial statements for a sample of Banks in line with the business core of Silicon Valley Bank. The period under assessment ranges from 2006-2022. We estimate an indicator of Bank Efficiency using the technique Data Envelopment Analysis (DEA). The latter indicator is used as the primary step to analyze failure within sample banks. According to the CAMEL model, macroeconomic variables are non-significant but relevant variables that drive failure were: Bank Efficiency, Capital adequacy, Earning ability, and Liquidity position ratio. Our study is relevant for any policy making to prevent any future bank failure.




How to cite this paper
Guillen, J. (2025). What really drove Silicon Valley and First Republic Bank bankruptcy?.Decision Science Letters , 14(1), 205-212.

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Journal: Decision Science Letters | Year: 2025 | Volume: 14 | Issue: 1 | Views: 313 | Reviews: 0

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