[chernevik]

> "the answer will almost certainly be far more stringent regulation on small banks"

And that regulation won't look kindly on lending to anything new, different or weird.

A lending model like SVB's won't be supported by regulators.

[coldtea]

They can always still lend on useful, productive, and with a chance of success, rather than using cheap QE VC money for BS business ideas...

[chernevik]

The point is that if you make a bureaucracy responsible for 100% of deposits it will be very risk averse in the loans it will let a bank make.