The collapse of SVB exposes the largest crack in the economy
SVB used an exemption from Basel III, which allowed it to run a riskier business, and eventually led to its implosion.Basel III was introduced to force banks to be more conservative, and thus more safe. Downside: this also means bank is going to be less profitable.European banks were forced to implement Basel III, while the US bankers managed to lobby a loophole for certain types of banks. And sure enough, SVB leveraged this loophole.For those interested, FT Alphaville describes this in ample detail:Silicon Valley Bank is a very American mess   
https://on.ft.com/3ywMURD