Banking Struggles Spotlight Board Contingency Planning

Board strategy should strike a balance between short-term disruption and long-term transformation.

The banking industry continues to be in a state of crisis. The latest inflection point was the seizure of First Republic Bank by regulators and the sale of its assets to JPMorgan Chase Bank. We spoke with David Garfield, global head of industries of AlixPartners LLP, to get his views on what directors can learn from the well-publicized banking struggles, especially those of Silicon Valley Bank and First Republic Bank. He discussed the need for detailed contingency planning, the importance of proper board composition and the benefit of directors staying up to speed on technology. 

Directors & Boards: What lessons can boards learn from what happened to Silicon Valley Bank, and what continues to happen to banks like Signature Bank and First Republic Bank?David Garfield: One of the biggest lessons from Silicon Valley Bank’s (SVB’s) and First Republic’s failure is that boards need to be even more proactive in terms of contingency planning — traditional methods are no longer sufficient.

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Bill Hayes

Bill Hayes is managing editor of Directors & Boards.


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