The Federal Reserve failed in its role as the banking industry watchdog in the run up to the collapse of Silicon Valley Bank, the central bank said on Friday.

The Fed sharply criticized leadership at Silicon Valley Bank for "a textbook case of mismanagement," but the report also faulted the Fed's lax oversight and an inability to anticipate the systemic threat posed by the bank's failure.

"Federal Reserve supervisors failed to take forceful enough action," said Michael Barr, the central bank's vice chair for supervision, who wrote the report. "SVB's failure demonstrates that there are weaknesses in regulation and supervision that must be addressed."

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