What Public Policy theory can help explain the Silicon Valley Bank's ongoing situation?

Explaining the ongoing situation of Silicon Valley Bank using Public Policy Theory

Silicon Valley Bank is facing a challenging situation that can be better understood by applying the Institutional Theory in Public Policy. This theory suggests that organizations are greatly influenced by the norms, rules, and practices of the institutional environment where they operate.

In the case of Silicon Valley Bank, its ongoing situation can be analyzed through the lens of institutional pressures and the impact of regulatory policies on the bank's operations. Operating in the highly regulated financial industry, the bank's actions and decisions are significantly influenced by the rules and regulations set by government agencies such as the Federal Reserve and the Securities and Exchange Commission.

Furthermore, Silicon Valley Bank operates within the unique institutional environment of Silicon Valley, which is renowned for its innovative and fast-paced technology industry. Therefore, the bank's actions and decisions are also shaped by the norms and practices of the technology sector.

By applying the Institutional Theory, we can gain insights into how external factors such as government regulations and industry norms impact the behavior and decision-making processes of organizations like Silicon Valley Bank. This theory allows us to analyze the ongoing situation of the bank effectively and understand the various factors influencing its operations and decision-making.