Amidst the 2023 banking crisis, the collapse of SVB led to a bank run, highlighting the need for stricter US banking regulations.

Bank failures are back in the news, after three of the United States’ 30 largest banks collapsed in the past three months. These bank failures and the policy responses to date have taught us several important lessons about why such crises keep happening in the U.S. and how policymakers can act to break this self-destructive cycle.