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IMF: Bank collapses in the US could be the prelude to bigger problems KXan 36 Daily News

Date: June 3, 2023 Time: 10:47:00

The financial institution said the recent collapses of large internationally inactive banks, which had only a modest effect on credit conditions, could be the prelude to more serious and entrenched systemic financial stability problems.

According to the fund’s estimates, the maintenance of high interest rates by the US Federal Reserve System creates the threat of even greater problems in the US banking system and in non-bank organizations. in the future.

The IMF believes that the tightening of financial conditions will inevitably lead to an increase in the number of bankruptcies, a deterioration in the quality of loan portfolios, and an increase in stress situations for highly leveraged institutions. Ultimately, the fund concluded, keeping interest rates high increases the likelihood of further crises.

Hansen Taylor
Hansen Taylor
Hansen Taylor is a full-time editor for ePrimefeed covering sports and movie news.

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