Please click the link below to view Colonial First State’s views on the Credit Suisse crisis and collapse of US Banks.
Key points raised are :
- Markets have reacted to the recent collapse of three small banks in the US and the Credit Suisse crisis.
- Analysis of the reasons why these banks have collapsed point to specific issues in each scenario and don’t point to a wider systemic issue.
- Following the GFC, bank regulations tightened to ensure they are better capitalised, particularly in Australia where they operate with very strict oversight.
- Due to this instability it is likely that credit will become harder to obtain as banks become more risk adverse
- Central banks will take additional steps to increase confidence in the banking system.
- Markets will continue to be volatile however it isn’t expected that these bank collapses will turn into the next GFC.
