TMS Ep388: SVB collapse, Apple India, debt investments, deposit insurance

The collapse of the Silicon Valley Bank or SVB is the biggest US bank failure since 2008, which may make it look like a repeat of the Lehman Brothers collapse that triggered the 2008 global financial crisis. Banks across the globe may already be feeling the heat of SVB’s failure. So, what domino effects will the Indian banking system see? While a number of Indian tech start-ups have reportedly been affected by the crisis, what are the chances of a broader contagion reaching our shores?

$700 million investment, 100,000 jobs. These are the ambitious numbers that Apple has lined up for India. Moreover, the tech giant has also changed its internal structure to focus exclusively on the country. Certainly, the iPhone maker is highly buoyant of its growth prospects in the country as it plans to shift away from China. So, why is Apple so upbeat about India?

Over two months into 2023, the equity markets continue to remain subdued. The US Federal Reserve and the Reserve Bank of India or RBI also remain data dependent in their resolve to tighten the policy rates further. Against this backdrop, should investors shift their focus from equities to debt?

To protect investors’ money during events such as the Silicon Valley Bank collapse, governments and central banks across the world have a provision of deposit insurance, which protects your deposits. So, how does deposit insurance work when a bank collapses? Lets find out in this episode of the podcast.