The risk of chain bankruptcy in banks in the USA! Largest confiscated since the crisis in 2008

In the USA, the rate decision to be announced by the Fed next week and this week’s inflation data will be critical in terms of whether the bankruptcies will continue. The SVB took a series of urgent measures to allay concerns about a major banking system crisis following its bankruptcy and to restore confidence in the banking system. Officials in the US stated that all depositors in both banks will get their money back. While these latitudes provide relief, concerns remain that banks will face a dangerous operating environment if the Fed continues to raise interest rates.

Investors expect the Fed to raise rates 25 basis points with a 90 percent probability at its monetary policy meeting next week. The seizure of SVB also created risks for the banking system in the UK, where the bank has its largest subsidiary outside the US, while HSBC bought the bank’s subsidiary.

Vulnerability will increase

prof. Dr. According to Mehmet Şişman, from now on, we are entering a period in which banking and bond markets are on the rise and the fragility in finance has increased. Competition between capitals, insufficient increase in wages and the decrease in real wages seem to fuel this environment even more.

According to Bill Ackman, founder of Pershing Square, more banks are likely to fail even after the collapse of the SVB, although US officials intervened to boost confidence in the banking system.

prof. Dr. Şenol Babuşçu said, “The US administration took precautions and included the deposits under full guarantee. We could have faced more bankruptcies if measures were not taken. Bank failures in the USA will not have an impact on the world and Turkey at this stage,” he said.

CREATED LOSS ON THE EXCHANGE

Dr. Mahfi Eğilmez stated that the effect of the SVB bankruptcy on Turkey was mostly seen in the stock market and said, “There were serious losses in the bank shares and the dollar/TL rate rose. It is a serious problem for Turkey that banks are forced to buy Treasury papers at very low interest rates. If the value of these papers falls rapidly when interest rates start to rise in the future, banks holding these papers may face problems like the SVB,” he said.

prof. Dr. According to Hayri Kozanoğlu, one of the biggest risks facing the Turkish economy after the bankruptcy of the SVB is keeping the bond yields artificially low.