Sadly there are parallels with businesses and we have also seen this with banks. The collapse of RBS when I was in charge of the Corporate Banks’ offices and people across the Midlands and East of England represented the biggest challenge of my career.
As we know the continuation of a successful bank relies on confidence, as the typical activity is the maturity transformation of short term deposits into longer term loans. So liquidity is key.
Whilst this is a simplification, what is common is the impact on customers and staff of bank failure. I worked with skilful and experienced bankers at RBS who went across to Silicon Valley Bank in London – I wish them the best, and thank goodness that HSBC stepped in.