Saturday, March 18, 2023, 12:19 p.m.
The instability of the banking sector shown in recent days with the fall of Silicon Valley Bank (SVB) first, and then with the collapse of Credit Suisse, has put Europe on alert, which doubts a possible contagion effect. Possibility that the European Central Bank (ECB) ruled out. Experts say that the sector is “strong” and “resilient”, despite the new fall of 24% on the stock market of the Swiss entity.
2/4. meth in abundance and the banks had to look for profitability in other ways. Consequently, the banks that are sick were already sick yesterday and those infected yesterday were already sick. Now the Central Banks or the banks themselves are injecting funds into banks
– Santiago Niño (@sninobecerra) March 17, 2023
On this issue, which is on everyone’s lips due to fear of a possible financial crisis, the economist Niño Becerra spoke. Through a thread published on his social networks, the expert believes that “the current situation has been taking shape in recent years, since the Central Banks began to inject amphetamine at large and the banks had to seek profitability from other ways”.
The consequences of the above is a “disease” in some banks and a “contagion effect” in the rest. “Now the Central Banks or the banks themselves are injecting funds into banks in a delicate situation, but until when is this situation sustainable?”, asks the economist.
4/4. are going to accept for a value of €20. If that stops being the case, the savings will be in danger. And if you are thinking that deep down this is a matter of faith, you can think so.
– Santiago Niño (@sninobecerra) March 17, 2023
Niño Becerra also responds to the doubts that ordinary citizens show when hearing the words ‘financial crisis’. «Savings are safe as long as citizens continue to have confidence in the banking system and in money: that a 20-euro bill will be accepted for a value of 20 euros. If that stops being the case, savings will be in danger. And if they are thinking that deep down this is a matter of faith, they can think so, “he explains.