The failure of the US bank Silicon Valley Bank is associated with a systemic risk that will affect the US financial system and the entire world, Zhu Min, deputy director of the China Center for International Economic Exchanges said on March 25.
“We all witnessed the Silicon Valley Bank fail a couple of weeks ago. In my opinion, this is due to systemic risk.”Zhu Ming said.
According to him, this will have a serious impact both on the American financial system and on the whole world.
According to him, the reason for the bankruptcy is quite simple: mismanagement in the banking sector and imbalances in the structure.
The expert pointed out that much more important is the context in which this bankruptcy occurs. Namely, the longest period of monetary policy easing in 15 years and rapid growth in interest rates.
Source: Rossa Primavera
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