Higher than 25%?
To my eye, it does not look like Silicon Valley Bank did anything seriously wrong.
I mean, if more than 25% of your depositors show up on the same day and demand their money, EVERY bank is a candidate for insolvency!
In retrospect, SVB did make a mistake buying long term bond reserves at historically low interest rates.
When rates began to rise because of inflation, the cash re-sale price of their bond reserves dropped around 10%, and perhaps even more than 10% on bonds they did not try to sell for cash.
Regardless, so far, I cannot see any specific problem that caused SVB to fail - except depositor panic!
If some of the persons banking at SVB had less than $250k in deposits within the bank, they would still need access to the funding, which is why they physically showed-up as they do not have the option to wait for the government to reimburse that money. ......which can take up to 30 yrs I understand.....So That is what we are seeing - it’s not someone liaising with a personal banker or, transferring funds electronically, these are people genuinely afraid their money is gone.