Credit Suisse share prices dived a quarter on account of bad news about Silicon Valley Bank closure
All ready the prices of shares of Paribas and Deutsche Societe Generalebank dived.
France's Societe Generale SA dropped 12 percent at one point. France's BNP Paribas fell more than 10 percent. Germany's Deutsche Bank tumbled 8 percent and Britain's Barclays Bank was down nearly 8 percent. Trading in the two French banks was briefly suspended.
Credit Suisse is "a much bigger concern for the global economy" than the midsize US banks that collapsed, said Andrew Kenningham, chief Europe economist for Capital Economics.
It has multiple subsidiaries outside Switzerland and handles trading for hedge funds.
"Credit Suisse is not just a Swiss problem but a global one," he said.
Since the CSB has branches elsewhere in Europe and the world, its problems malaise is not confined to Switzerland but around the world. Gladly the Swiss National Bank promised a liquidity support up to $54 billion
This post may bear marks of nega and being alarmist. But is this the global collapse that pundits are predicting? Could this be the start of worldwide recession. ? Have we braced enough for this.?
Has our country institued countermeasures. ? But surely not yet since we are so far away yet
One of the aspects that we should be concerned about this is the foreign remittances by OFW. With these bank malaise, banks may tighten lending and if closed cause domino effect on the industries they are supporting.. And this may mean reduced inward remittances Lesser consumer spending locally
Bad for the local economy. Should we not be concerned?
