Bank collapse – a one-off or an early warning signal

Skittish as a yearling colt the markets were spooked by the collapse of a small Silicon Valley bank which sent shares in major US banks plummeting and rippled across the Atlantic to affect UK and EU financial entities as well. However banking experts say it doesn’t seem likely to trigger a wider financial meltdown. Unlike the giant banks that ignited a global crisis in 2008, SVB was heavily dependent on a single risky sector of the economy for depositors and customers.  What seems to