March 31, 2023
Joseph Biden

US President Joseph Biden

┬ęGlobal Look Press/Keystone Press Agency

US leader Joe Biden said the country’s banking crisis is over. Thus, he answered a journalist’s question during a press conference at the White House, reports on Saturday, March 18, RIA News.

“Yes,” the president said when asked if the US banking situation had calmed down.

Previously, it was known that regulators shut down Silicon Valley Bank and New York’s Signature Bank due to systemic risks. The bankruptcy of Silicon Valley Bank was the largest in the US since the 2008 crisis. The collapse is associated with an increase in the discount rate the US Federal Reserve, which led to the depreciation of assets on the balance sheets of many financial institutions. In 2022, the cumulative losses of banks amounted to $620 billion, according to the FDIC.

In Europe, problems arose with one of the largest banks in Switzerland – Credit Suisse. Economists have warned that another 186 banks in the US are at risk of bankruptcy. It was noted that if uninsured depositors decide to close their accounts, insured ones will face depreciation. In this case, the authorities will have to intervene in the situation.

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