The above article has explained the Silicon Valley Bank (SVB) | ECONOMY by VIVEK SINGH

The above article has explained the Silicon Valley Bank (SVB) crises very well. I would just like to add on the concept part.

Suppose the market interest rate is around 6% and corporates issued bonds (at a coupon/interest rate of 6% and face value Rs. 100) to raise funds and these bonds were purchased by banks (so basically banks are investing the depositors money into bonds).

Now if Central Bank increases the interest/repo rate (to control inflation) then the interest rate in the market will go up and the new bonds will be issued at a higher interest/coupon rate lets say 8% [In a very short span in the last few months interest rates has increased quite a lot]. So now, no investor will purchase the old bonds (in the secondary market) as it is offering a lower interest rate of 6% as compared to the new bonds offering 8%. But there can be a case where investors will be willing to purchase old bonds, if it is offered at a lesser price (than Rs. 100). So basically, when interest rate in the market goes up, the price of the previously issued bonds goes down and this leads to a decline in the capital base of the investors (SVB Bank) who had purchased these bonds.