BANK ON IT Everything you need to know about the financial market chaos after bank shares crash

THE financial markets have been a roller coaster for the past week and shares in banks have been crashing, leading to fears that we are on the edge of a 2008-style credit crunch.

CAN we all relax?

Not quite. The biggest worry is the problems ­lurking in banks’ balance sheets.

Simon French, economist at Panmure Gordon, said: “If everyone starts to doubt everyone else, the fear factor starts spreading”. Banking relies on confidence.

One problem is that, compared to 2008, social media plays a huge part.

The SVB bank run was largely led on WhatsApp and shows how automated payments allow billions of pounds to be pulled in fractions of seconds.

A second issue is the last financial crisis, pandemic and Ukraine war put economies in a lot more debt.

Full article here: https://www.thesun.co.uk/money/21781620/financial-market-bank-shares-chaos-guide/

Author: Ashley Armstrong, Business Editor, The Sun

Simon French

Managing Director, Head of Research