May 2023

Rates turmoil strikes financial system

The spike in interest rates over the past couple of years has transformed the banking landscape and placed immense pressure on individual institutions, leading to dramatic rescues in the US and Switzerland, and raising the dual spectres of systemic failure and a credit crunch.

What's covered?

  • End of low rate era
  • Record deposit outflows
  • Swiss bank bondholders get burned
  • Differences between US and European bank regulation
  • Central banks retain anti-crisis tools