Held-to-maturity assets present banking risks, paper says

Boston Fed research argues SVB failure could mean regulatory re-think

Boston Fed
The Federal Reserve Bank of Boston

Silicon Valley Bank’s collapse shows regulators may need to require lenders to prove they can hold assets to maturity, new research says.

The failure of SVB may have been affected by too high a proportion of assets it classified as held to maturity, author Michael Walker argues. Walker’s research note, published by the Federal Reserve Bank of Boston, was the topic of a blogpost by his colleague Amanda Blanco. 

“A bank can categorise a debt security – such as a bond – as ‘held to maturity’ or ‘HTM’

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