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US financial crisis continues to generate uncertainty

US financial crisis continues to generate uncertainty

The financial crisis unleashed after the closure of Silicon Valley Bank (SVB) continues to cause fear in some markets internationally.

In Europeas an emergency measure to ensure financial stability, the UBS Group AG (UBS), one of the most important Swiss banks, had to acquire its rival, the Credit Suisse, for more than US$3,000 million. This after the entity will report a sharp drop in its shares.

Now added to the list Deutsche Bank, whose shares fell as much as 11%. Besides, losses were also reported at Commerzbank (-8.4%), Société Générale (-7%) and STOXX 600 –stock market index made up of 600 European companies– closed the week with losses of up to 4%.

The main institutions of the United States, such as the Federal Reserve (Fed) and the US Treasury and the FDIC, have implemented measures to guarantee the protection of deposits. Along these lines, Janet Yellen, Secretary of the United States Treasury, assured that “the American banking system remains solid” and stated that the situation is not comparable to the global financial crisis of 2008.

  Entity reported a sharp drop in its shares.  Photo: diffusion

Entity reported a sharp drop in its shares. Photo: diffusion


For Julio Velarde, president of the Central Reserve Bank of Peru (BCRP), the outlook is still uncertain, but he stressed that foreign bank deposits have not been affected. “It is not clear if it is going to be an event like the one in the United Kingdom, five weeks ago, and that no one remembers anymore or if it will have consequences. Let’s hope not, depending on what happens, an adjustment in the financial market will be perceived and interest rates will also be different in the world, ”he indicated.

Peruvian banking

For his part, the economist Enrique Diaz He pointed out that there are currently no factors that imply contagion to Peruvian banks. “The risk is latent, but it is not conclusive. If there is an important bank that is destabilized and is connected to the financial system of Peruthe contagion would be unleashed very quickly, but it is not the case at the moment”, he said.

He reiterated that even if there was an impact, it would be “moderate” because Peruvian banks do not depend on external groups. “The AFPs have less and less money invested abroad and banks with an outside line are not so important within the general portfolio of Peruvian banks,” he concluded.

The key

Values. To avoid prolonging the crisis, 11 large North American banks, such as the Bank of America, JPMorgan Chase and the Citigroup, announced that they would inject $30 billion into the First Republic, after its shares fell.

Source: Larepublica

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