Photo Credit: BBC
US Treasury Secretary Janet Yellen insisted the country's banking system was sound, despite reports that another regional bank might need bailing out. Concerns about the San Francisco-based First Republic stem from a series of US bank failures that raised fears of a broader financial crisis.
The unrest has spread across the world, with the Swiss National Bank providing giant Credit Suisse with up to £44 billion in emergency funds. Markets recover after aid. The major indices across Europe, which fell on Thursday amid concerns over the collapse of Credit Suisse, recovered.
Authorities intervened to secure deposits to stop further attacks on bank deposits as panic spread. Ms. Yellen told the Senate Treasury Committee, "This week's actions demonstrate our strong commitment to protecting savings."
Meanwhile, European Central Bank (ECB) Vice President Luis de Guindos said that the banking sector in Europe was “resilient” and that companies had “limited exposure to US institutions”.
He was speaking as the ECB announced another rate hike from 2.5% to 3%, sticking to its rate-hike plan despite concerns about how the move could trigger market turmoil.
No comments:
Post a Comment