At this time, Silicon Valley Bank failed, Credit Suisse Group AG received a $54 billion lifeline from the Swiss National Bank, and First Republic Bank received a $30 billion Wall Street whip-round.
A months-long bank surge is now a rout. That is an overreaction, according to bank officials and analysts, given that the system is considerably better able to handle stress and central banks have intervened with assistance totaling more than $200 billion.
Source:- Business Standard
Howard Davies, chairman of NatWest Group Plc, said on Friday on Bloomberg Television that Credit Suisse has had idiosyncratic challenges and I don’t think people can sensibly read across from that one individual bank to the rest of the banking sector. Generally, the European banking industry is still well-capitalized and liquid.
Source: Bloomberg Television
Mark Dowding, chief investment officer at RBC BlueBay Asset Management, agreed with him and stated that although the issues at SVB and Credit Suisse may bring back memories of the 2008 banking catastrophe, this time around, things are different.
He said that banks could have been better capitalized, overly leveraged, and subject to considerably less regulation at the time of the GFC.
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