In March，liquidity runs rattled the US financial sector，resulting in the failure of several regional banks，including Silicon Valley Bank (SVB) and others.

The turbulence caused market disruptions，fears，and significant deposit withdrawals from small and medium-sized banks. The US banking regulators took it seriously and acted swiftly to preserve the banks by introducing a new Bank Term Funding scheme that permits them to borrow at par against secured treasury and agency securities for up to one year. In the interim，they offer alternative funding options，such as discount window loans，among others.

Thus，a more calamitous financial disaster and additional domino effects were significantly averted. The Fed，FDIC，and other regulatory agencies collaborated in the following ways to resolve the liquidity run issue:

By expanding its balance sheet，the Federal Reserve guaranteed all SVB deposits，insured and uninsured，and injects significant liquidity into the economy via a variety of channels. Numerous public documents，such as congressional hearings，explained how the SVB failed. The Fed's rapid increase in interest rates，the bank's severe mismatch between asset and liability maturities，and the bank’s mismanagement of the relevant risks，along with its sudden massive loss of concentrated deposit clients，including venture capital firms and startups，were cited as the primary causes of SVB's failure.