logo
episode-header-image
Aug 2023
5m 40s

1044 - This Key Banking Figure Just Gave...

BIGGERPOCKETS
About this episode

The leader of the bank for central banks—the Bank for International Settlements (BIS)—is sounding the alarm. 

Just this week, BIS general manager Agustín Carstens told reporters that “The global economy is at a critical juncture.” And according to the bank’s just-released annual report, if inflation isn’t tamed and consumer prices remain high for much longer, banks could see credit losses of a “similar order of magnitude” to those of the 2008 financial crisis. 

The comments are jarring, particularly on the backs of three bank failures earlier this year. BIS’s typical stances—which are usually more reserved—also lend gravitas to the statements.

“The resilience of the financial system will be tested again,” the report reads. “Pockets of vulnerability remain. Recent events have shown how the failure of even comparatively small institutions can shake confidence in the overall system.”

Learn more about your ad choices. Visit megaphone.fm/adchoices

Up next
Yesterday
America's Housing Shortage Continues to Get Worse According to New Report
As buyer demand increases, the housing shortage continues to grow. In today's show, Matt explains why America’s housing deficit has now reached nearly 4.7 million homes, what it means for home prices, and which markets are most affected. From shifting affordability to stubborn su ... Show More
10m 6s
Jul 9
How More and More Landlords are "Accidental"
The return-to-office (RTO) mandates have created an unexpected wave of reluctant landlords—homeowners who never planned to rent out their properties but are now forced to due to changing job demands and high interest rates. Selling doesn’t make financial sense, leaving many to na ... Show More
17m 20s
Jul 8
Understanding America's "Silver Tsunami"
Baby boomers own nearly $19 trillion in U.S. real estate—but as they age, millions of homes will eventually hit the market. In this episode, we explore what the so-called “silver tsunami” really means, why Gen Z may benefit more than millennials, and how investors can prepare for ... Show More
15m 45s
Recommended Episodes
Mar 2023
The Huge Significance of Small Banks
Torsten Slok had been firmly in the “no landing” camp of economists. More positive than a “soft landing,” its adherents say the Federal Reserve will tame inflation without triggering a recession at all. But for Slok, chief economist of Apollo Global Management, that all changed w ... Show More
39m 43s
Apr 2024
Do Bank Failures Always Cause Recessions? (SVB)
Last year's banking crisis in Silicon Valley, where three banks including Silicon Valley Bank failed, caused bank runs and put pressure on other banks like Credit Suisse. This is reminiscent of past US banking disasters such as the Great Depression and the 2008 recession. Many ec ... Show More
18m 57s
Mar 2023
Should I be worried about all the bank failures?
Are we in the middle of a financial crisis? Today’s show breaks down the latest bank crises — from Credit Suisse to First Republic. Read more: Another week, another banking calamity.  On Sunday, Swiss banking giant UBS came to the rescue of its rival, Credit Suisse. It was the fi ... Show More
18m 31s
Mar 2023
Will the sale of Silicon Valley Bank relieve pressure on the system?
After a few weeks of bad news about bank failures, financial markets are slowly coming back to normal. Central banks around the world have stressed that the banking system is safe and lenders are well capitalised. Analysts, however, admit that risks to financial stability have in ... Show More
52m 23s
Mar 2023
Deja vu? Another weekend of bank turmoil
It’s been a tough couple of weeks for the global banking sector — the embattled lender Credit Suisse was purchased by fellow Swiss rival UBS for a motley sum of around $3 billion. University of Michigan professor Erik Gordon explains what that means amid the wider unease about th ... Show More
6m 41s
Mar 2023
Global Data Pod Weekender: You can get there from here
The risk of a meaningful tightening in credit conditions raises the odds of a US recession and potentially a global one as well. However, it is unclear whether the fallout from recent events is a newly-added headwind or a consequence of central banks’ intended slowdown. For now, ... Show More
19m 50s
Apr 2023
Here Are the Signs of a Slow-Moving Credit Crunch
The big headlines from March's banking crisis have receded and balances at some of the Federal Reserve's emergency lending facilities, like the discount window, are starting to fall. But if you look closely, there are still signs of strain in the depths of the financial system. A ... Show More
45m 51s
Apr 2023
First Republic's future under scrutiny again
The bank's shares plunge by more than 40% as plans for its survival fail to materialise. We ask experts what First Republic's clients can expect as news that the bank might be placed under receivership start to emerge. The US financial sector continues to tremble as the Federal R ... Show More
27m 28s
Apr 2023
Bright or turbulent? Mixed views on global economy’s prospects
Bright or turbulent? Mixed views on the global economy’s prospects The IMF and World Bank spring conference has been hearing mixed views on the immediate prospects for the global economy. IMF Chief economist Pierre-Olivier Gourinchas reckons that ‘turbulence is building and the s ... Show More
26m 27s
May 2023
Vishy Tirupattur: Liquidity, Regional Banks and Potential Regulation
As the banking sector is in the news again, investors wonder about an increase in borrowing from the Fed and possible restrictions on the horizon. ----- Transcript -----Welcome to Thoughts on the Market. I'm Vishy Tirupattur, Morgan Stanley's Chief Fixed Income Strategist. Along ... Show More
3m 9s