What next for the banks after the collapse of the SVB? [Closer to the Exchange]

Collapse of the Silicon Valley Bank is the largest bankruptcy in the US banking sector since 2008. With assets of $209 billion, SVB is second only to Washington Mutual Bank, which had assets of $307 billion at the time of bankruptcy. Can SVB happen again?

The genesis of last week's situation is extremely expansionary monetary policy Fedwhich for years provided market participants with free access to cheap money. The current cycle of interest rate increases in the United States, which began in March last year, is characterized by the highest dynamics in recent decades. As interest rates rose, banks began to record higher and higher unrealized losses on investments in safe treasury bonds. In the case of Silicon Valley Bank, the nail in the coffin was the numerous withdrawals of deposits, which on March 9 reached the critical value of $ 42 billion and led to a kind of fleece for sure.

Will China help the Polish stock market?

How are the top US banks doing? The SVB was not the only institution that invested huge amounts of money in bonds, which, due to the increase in interest rates in the United States, began to depreciate. Among the banks with the deepest unrealized losses on these investments are Citigroup, Bank of America, JP Morgan or Wells Fargo. Compared to American competitors, Polish banks have performed surprisingly well in recent months. Is this a good time to buy shares?

We invite you to the next webinar Closer to the Stock Exchangein which Maciej Kietliński answers the question - what next for banks after the collapse of SVB?

In the latest webinar:

• Why did the Silicon Valley Bank fail?
• Is it only the fall in bond prices that is to blame?
• Which banks are most at risk?   

About the host

Maciej Kietlinski - professionally involved in the analysis of capital markets since 2017. He gained the necessary experience in such renowned companies as BGŻ BNP Paribas or Noble Securities. In his last place of work, he specialized in the analysis of listed companies from the dynamically developing gaming sector. He also gave stock exchange comments on TV Biznes24, Parkiet.tv or Inwestorzy.tv and for Forbes, Reuters, Parkiet, Gazeta Wyborcza and PAP Biznes. Kietliński also focuses on development, which is why he is currently working on a doctoral dissertation in economics at the Warsaw School of Economics. CIIA, Investment Advisor or Stock Broker.

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