The bankruptcy of Silicon Valley Bank, one of the largest banks in the USA, is associated with a serious systemic risk that will affect the financial systems of the USA and other countries. This was expressed by Zhu Min, Deputy Director of the China Center for International Economic Exchanges, in his speech at the opening of the China Development Forum in Beijing. DEA News.
“We all witnessed the bankruptcy of Silicon Valley Bank a few weeks ago. I think this is due to systemic risk,” said Zhu Ming.
Even if Silicon Valley Bank is not systemically significant and its failure poses no systemic risk, the nature of this collapse says so.
The expert expressed the opinion that inefficient management in the banking sector, imbalances in the structure and poor management of risk management led to the bankruptcy of the American bank.
Zhu Min highlighted what is most important in the midst of the bank robbery: The global economy is facing the longest period of monetary easing and fiscal stimulus in the past 15 years, and is also experiencing the fastest rate hike in history at 500 basis points. points for last year.
“I don’t think anyone working in the finance industry has seen anything like this before. And this has consequences, ”the expert added.
March 10 Federal Deposit Insurance Corporation (FDIC) Press Service reported About the destruction of the American Silicon Valley Bank (SVB), which ranks 16th in the list of the largest credit institutions in the USA.
Later Bloomberg agency requestedIt was stated that the USA could not find a buyer for Silicon Valley Bank, which survived bankruptcy, and therefore regulators decided to sell the credit institution piecemeal.