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.
Author: Ashley Armstrong, Business Editor, The Sun
Managing Director, Head of Research