The recent bankruptcy of Silicon Valley Bank has been attributed to the rise in interest rates and poor management decisions. While interest rates are expected to remain high, most analysts agree that Europe’s banking system is well equipped to handle the fallout. Nevertheless, there may be “pockets of vulnerability” for poorly managed banks. The SVB turmoil may restrain the Fed and the European Central Bank from escalating interest rates, but until inflation drops significantly, interest rates will remain high. The US authorities have taken steps to secure their banking system from another crisis, and although the worst of the SVB crisis appears to be over, it highlights the importance of good management decisions during times of economic turbulence.