NEW DELHI, March 27 -- Over the last few weeks, we have been reading a lot about the US banking system. The Silicon Valley Bank (SVB), which was the 16th largest bank in the US, has collapsed. So has the Signature Bank. As if this was not enough, the crisis also impacted Credit Suisse, the famous bank based in Switzerland.

Many would have wondered what happened to these financial institutions. That too in a country, which is popular for its rules and regulations.

Well, crises can strike anywhere, where things are taken for granted. In the case of SVB, the bank management did not focus on what is called asset-liability management. It did not notice that its deposits grew at a phenomenal rate, in fact, three times from 2019 to 2022. This ...