Banks are scaring again. Are we facing a crisis? What will the week bring?

Silicon Valley Bank bankruptcy is not only the most talked about market topic of recent days, but also the first bankruptcy of such a large scale in the United States since 2008. The lack of adequate risk control and sufficient diversification meant that, although SVB invested its clients' money in safe assets long-term US Treasury bonds, the bank suffered huge losses. The recent increases in interest rates contributed to them Fedwhich exerted significant pressure on the price of debt securities. He turned out to be the straw that filled the cup run to the bank, during which panicked bank customers began to withdraw their money en masse from their accounts.

Silicon Valley Bank is just another domino?

The spice of the whole thing is added by the fact that SVB is not the first bank to collapse recently. The high-profile collapse of FTX and Alameda Research led to an industry-friendly crypto shutdown Silvergate Bank. Despite reports of a healthy financial condition, Signature Bank, which also provided services to cryptocurrency companies, was also closed. The common denominator of all these bankruptcies seems to be the policy of the Fed in recent years, which flooded the market with cheap money in response to the Covid pandemic, and then started drastic interest rate increases. Silicon Valley Bank and Silvergate Bank are not the only institutions that have recorded high, unrealized losses on investments in long-term treasury bonds. Citigroup, Bank of America, Wells Fargo and even JP Morgan are facing a similar problem. What next for the US banking sector?

We invite you to a meeting with the Chief Economist XTB Dr. Przemysław Kwiecień, in which he will focus on the key topic of this week - banks are scaring again.

In today's video:

• A new banking crisis?
• Do the fall of Silvergate and SVB have a common denominator?
• Time for inflation - what will the Fed do?

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In addition, due to the very dynamic situation in the world, additional ones will be made available raports Video on the impact of war, pandemic and economic crisis on the global economy.

About the host

Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.

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