Learning from SVB's Collapse: Aspiring Beyond Compliance and Strengthening Data-Driven Regulation
The collapse of SVB has raised important lessons for banks and regulators, as highlighted by James Bowpitt, the Risk and Regulatory Reporting UK Lead at Suade Labs. SVB's downfall stemmed from a myopic focus on meeting regulatory requirements without considering broader factors. Banks should strive for goals beyond compliance, such as proactive risk assessment, customer-centricity, and innovation.
Additionally, regulators need to enhance their data-driven effectiveness by leveraging real-time data and advanced analytics. This would enable timely intervention and mitigation of systemic risks. A holistic approach to risk management and proactive supervision is crucial to prevent similar incidents in the future.