Business Post's View

Editorial: US banks’ dramatic demise carries a warning for regulators

Central banks must take into account the potential for liquidity crises as they consider further interest rate rises

Contagion spread from Silicon Valley Bank to Signature Bank and on to America’s regional banks. Picture: Getty

What just happened? In barely a week, two US banks collapsed and another had to be rescued. In Europe, the share price of Credit Suisse tumbled and sent shock waves through global financial markets, forcing the Swiss central bank to offer it SFr50 billion in emergency credit. The Financial Times reported on Saturday that UBS, another Swiss bank, and BlackRock, the world’s largest asset manager, are interested in acquiring the troubled lender.

That is a ...