https://www.scmp.com/rss/515152/feed The latest news, analysis and opinion on Silicon Valley Bank (SVB). In-depth analysis, industry insights and expert opinion. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Jean Tirole Jean Tirole The fascination with cryptocurrencies shows no sign of fading. With the passage of the Guiding and Establishing National Innovation for US Stablecoins (Genius) Act in July, US lawmakers added to the sense that crypto is here to stay. But an uncomfortable issue remains unresolved: are cryptocurrencies a genuine innovation capable of serving the common good, or a speculative threat to financial and social stability? Not all cryptocurrencies are alike. Unbacked ones, such as bitcoin or Ethereum,... https://www.scmp.com/opinion/world-opinion/article/3337375/harness-crypto-ingenuity-financial-threat-must-first-be-neutralised?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3337375/harness-crypto-ingenuity-financial-threat-must-first-be-neutralised?utm_source=rss_feed Fri, 26 Dec 2025 12:30:08 +0000 Venture capitalist Marc Andreessen and his wife, Laura Arrillaga-Andreessen, are making headlines again – but this time, it’s not just about tech investments. Laura, along with brother John Arrillaga Jr, is behind an enormous development project in Solano County, California, per TechCrunch. The pair, through a company run by John, are plotting a mixed-use community close to the proposed California Forever utopian city – the brainchild of Andreessen and his Silicon Valley friends. But here’s the... https://www.scmp.com/magazines/style/entertainment/article/3299305/meet-marc-andreessens-wife-and-kim-kardashians-pal-laura-arrillaga-andreessen-shes-daughter?utm_source=rss_feed https://www.scmp.com/magazines/style/entertainment/article/3299305/meet-marc-andreessens-wife-and-kim-kardashians-pal-laura-arrillaga-andreessen-shes-daughter?utm_source=rss_feed Wed, 19 Feb 2025 20:00:08 +0000 The 23 largest banks in the United States passed the Federal Reserve’s so-called stress tests this year, a sign that the nation’s banking system remains resilient despite the recent crisis that led to the failure of Silicon Valley Bank, Signature Bank and First Republic Bank. The Fed’s report issued on Wednesday did show some relative weakness among the midsize banks and “super regional” banks, with some getting a passing grade with a smaller cushion than usual. Those results could raise... https://www.scmp.com/business/banking-finance/article/3225828/wall-streets-biggest-banks-would-survive-severe-recession-feds-stress-tests-show?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3225828/wall-streets-biggest-banks-would-survive-severe-recession-feds-stress-tests-show?utm_source=rss_feed Thu, 29 Jun 2023 02:18:09 +0000 First Citizens Bank & Trust has sued HSBC Holdings for allegedly raiding dozens of employees from Silicon Valley Bank (SVB) in a scheme dubbed “Project Colony” as First Citizens was taking over the failed California lender. Two weeks after First Citizens acquired SVB on March 27, HSBC poached 42 bankers on Easter Sunday and brazenly took and misused SVB’s confidential, proprietary and trade secret information, according to a complaint filed on Monday in federal court in northern... https://www.scmp.com/business/banking-finance/article/3221492/first-citizens-sues-hsbc-stealing-svb-staff-and-secrets-part-project-colony-scheme?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3221492/first-citizens-sues-hsbc-stealing-svb-staff-and-secrets-part-project-colony-scheme?utm_source=rss_feed Tue, 23 May 2023 03:57:36 +0000 Banks including Citizens Financial Group, PNC Financial Services Group and JPMorgan Chase & Co are among roughly half a dozen bidders vying to buy First Republic Bank in an auction process being run by US regulators, according to sources familiar with the matter. Guggenheim Securities is advising the US Federal Deposit Insurance Corp (FDIC) on the sale process, two sources familiar with the matter said. The process kicked off this week after the lender that got swept up in a banking crisis last... https://www.scmp.com/news/world/united-states-canada/article/3218885/first-republic-bank-auction-under-way-deal-expected-sunday?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3218885/first-republic-bank-auction-under-way-deal-expected-sunday?utm_source=rss_feed Sat, 29 Apr 2023 19:04:49 +0000 As India prepares to host the Group of 20 in September, it might be the “last supper” for the grouping. G20, the poster child of globalisation, is plagued by a myriad of crises – none of which it can solve. Or can it? Let’s start with nuclear weapons. A new nuclear arms race has begun, with Russia planning to deploy tactical nuclear weapons in Belarus. Poland might be next, hosting American nukes. In the Indo-Pacific, South Korea and the United States are discussing joint control of nuclear... https://www.scmp.com/comment/opinion/article/3218475/india-doomed-chair-most-impotent-g20-modern-times?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3218475/india-doomed-chair-most-impotent-g20-modern-times?utm_source=rss_feed Fri, 28 Apr 2023 19:30:10 +0000 The recent and still-reverberating regional banking troubles in the United States require a frank assessment of the failures and faults by many actors. Central bankers and supervisors in other jurisdictions could learn lessons from America’s mistakes, in matters related to bank culture, regulation and supervision. On bank culture, a topic on which the Group of Thirty has opined repeatedly, the lessons are clear. A firm’s culture, demonstrated by the board and leadership, determines risk... https://www.scmp.com/comment/opinion/article/3217916/how-china-can-learn-mistakes-us-banking-culture-and-oversight?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3217916/how-china-can-learn-mistakes-us-banking-culture-and-oversight?utm_source=rss_feed Wed, 26 Apr 2023 07:45:16 +0000 First Republic Bank’s deposits fell by over US$100 billion in the first quarter and it said it was exploring options including restructuring its balance sheet, overshadowing market-beating profit and sending its shares down 21 per cent after the bell on Monday. The results mark the most important quarter for the troubled bank as it prepares to increase insured deposits, cut borrowings from the Federal Reserve Bank and loan balances, it said, while aiming to lay off nearly 20-25 per cent in the... https://www.scmp.com/news/world/united-states-canada/article/3218216/first-republic-deposits-tumble-over-us100-billion-after-silicon-valley-bank-collapse?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3218216/first-republic-deposits-tumble-over-us100-billion-after-silicon-valley-bank-collapse?utm_source=rss_feed Mon, 24 Apr 2023 21:35:02 +0000 For those people who are naive or foolish enough to believe the latest banking crisis is over – and there appear to be many of them still, including commentators who should know better – the continuing flight of bank deposits must have come as a shock, although it should not have. Even a cursory analysis would suggest that, after a long period of record low interest rates during which borrowing at household, corporate and government levels reached new heights, successive and sharp rate increases... https://www.scmp.com/comment/opinion/article/3217752/deposit-flight-shows-damage-latest-banking-crisis-far-done?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3217752/deposit-flight-shows-damage-latest-banking-crisis-far-done?utm_source=rss_feed Sat, 22 Apr 2023 17:00:08 +0000 It’s not a question of if, but when. Recession is an inevitability in the United States and in several other major industrial nations which are on the brink of two successive quarters of negative growth this year. The problem is that the scope for remedies is limited, with global monetary policy given over to fighting inflation and government budgets severely overstretched from the Covid-19 pandemic. For a major manufacturing country such as China, which hopes for healthy world trade growth to... https://www.scmp.com/comment/opinion/article/3217310/looming-us-recession-puts-pressure-others-get-growth-policies-right?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3217310/looming-us-recession-puts-pressure-others-get-growth-policies-right?utm_source=rss_feed Mon, 17 Apr 2023 13:30:09 +0000 In these times of huge turmoil, where should I put my money? The collapse of Silicon Valley Bank (SVB) and UBS takeover of Credit Suisse have shaken investor confidence, despite swift action by the US and Swiss regulators to stop the contagion and contain the fallout. The damage is done. Confidence in global financial regulation and bank management has been shaken, not just by continuing weaknesses in financial institutions after the 2008 Lehman Brothers collapse but also in the regulatory... https://www.scmp.com/comment/opinion/article/3216239/its-getting-harder-be-savvy-investor-financial-and-geopolitical-risks-grow?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3216239/its-getting-harder-be-savvy-investor-financial-and-geopolitical-risks-grow?utm_source=rss_feed Fri, 07 Apr 2023 08:45:11 +0000 On the morning of February 26, 1995, I was awoken in a Swiss mountain lodge by the BBC World Service news on my Sony shortwave radio. The signal was indistinct (this was pre-digital) and I gleaned through the ether that a famous British bank had gone bust – but I could not catch the name. I had to wait 30 minutes for the headlines, and a clearer signal, to hear that the 233-year-old Barings Bank had gone under. The collapse of Barings was very different to the recent banking crises in Europe,... https://www.scmp.com/comment/opinion/article/3216074/bigger-barings-banking-crises-have-been-averted-how-safe-your-capital?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3216074/bigger-barings-banking-crises-have-been-averted-how-safe-your-capital?utm_source=rss_feed Thu, 06 Apr 2023 13:30:09 +0000 The world has entered into a new phase of global instability, making it imperative again for investors to batten down the hatches against the spectre of rising risk. The aftermath of the Covid-19 pandemic, the effects of the Ukraine war, the recent inflation spike and now the latest banking crisis are making it that much harder for investors to choose where they should ideally lie on the investment curve to mitigate their risks. For large sovereign investors such as China, the challenge is made... https://www.scmp.com/comment/opinion/article/3215802/us-banking-woes-compound-chinas-need-us-treasury-alternatives?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3215802/us-banking-woes-compound-chinas-need-us-treasury-alternatives?utm_source=rss_feed Mon, 03 Apr 2023 07:45:10 +0000 Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@scmp.com or filling in this Google form. Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification. The sudden collapse of Silicon Valley Bank (SVB) has drawn the world’s attention to risk oversight of financial institutions, and the need to enhance financial security and contingency plans. Some... https://www.scmp.com/comment/letters/article/3215551/silicon-valley-bank-collapse-shows-need-learn-past-mistakes?utm_source=rss_feed https://www.scmp.com/comment/letters/article/3215551/silicon-valley-bank-collapse-shows-need-learn-past-mistakes?utm_source=rss_feed Mon, 03 Apr 2023 03:30:09 +0000 The current banking crisis is a painful reminder of the fragility of confidence and trust in our financial system. It is also a reminder to the finance community and communications professionals of the importance of high-quality communication and the very real risks that instant messaging and social media present to institutions. Over the past few weeks, we have seen how potent the combination of poor management and internal controls at Silicon Valley Bank (SVB), wafer-thin faith in bank... https://www.scmp.com/comment/opinion/article/3215313/era-social-media-fuelling-bank-runs-good-communication-more-vital-ever?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3215313/era-social-media-fuelling-bank-runs-good-communication-more-vital-ever?utm_source=rss_feed Sun, 02 Apr 2023 12:30:18 +0000 Anthony Rowley Anthony Rowley If pilots crash their planes or train drivers their trains, or if captains sink their ships (and assuming that they survive), they often lose their licences or face more serious consequences. Yet bankers seem to crash the financial system with alarming regularity and seeming impunity. To deal with this alarming problem, we need perhaps not only tighter regulation and stiffer penalties for offenders but also greatly improved financial system design and better training (in ethics as well as... https://www.scmp.com/comment/opinion/article/3215462/we-need-better-financial-system-so-bankers-cant-go-crashing-it?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3215462/we-need-better-financial-system-so-bankers-cant-go-crashing-it?utm_source=rss_feed Sat, 01 Apr 2023 08:30:14 +0000 Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@scmp.com or filling in this Google form. Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification. Antimicrobial resistance is one of the defining global problems of our time. Drug-resistant bacterial infections killed an estimated 1.27 million people in 2019. By 2050, 10 million lives annually... https://www.scmp.com/comment/letters/article/3215597/china-can-do-more-squash-antibiotic-resistant-superbugs?utm_source=rss_feed https://www.scmp.com/comment/letters/article/3215597/china-can-do-more-squash-antibiotic-resistant-superbugs?utm_source=rss_feed Sat, 01 Apr 2023 03:30:15 +0000 Global investors watched in horror over the past month as two US banks collapsed and struggling Swiss finance giant Credit Suisse was taken over by rival UBS, triggering concerns it could spark a contagion effect that would spread to Asia in the same way as the global financial crisis of 2008. Analysts say most Asian banks learned from that episode and are well positioned to ride out the current turmoil. But they warn of higher borrowing costs and tighter lending conditions, which could disrupt... https://www.scmp.com/week-asia/economics/article/3215654/asias-start-ups-start-squirm-contagion-fears-linger-easy-money-dries?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3215654/asias-start-ups-start-squirm-contagion-fears-linger-easy-money-dries?utm_source=rss_feed Sat, 01 Apr 2023 03:00:18 +0000 Over the past year, stubbornly high inflation has forced the US Federal Reserve into arguably its most acute monetary tightening cycle yet. Since March last year, the US central bank has increased its interest rates by an aggressive 4.75 percentage points – compared to the average rate tightening cycle of 3.02 percentage points over 21 months. This drastic pickup in interest rates has led to a significant tightening in lending standards and a sharp downward reassessment of asset prices. At the... https://www.scmp.com/comment/opinion/article/3215419/us-banking-stress-rises-heres-what-investors-should-be-looking?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3215419/us-banking-stress-rises-heres-what-investors-should-be-looking?utm_source=rss_feed Fri, 31 Mar 2023 13:30:13 +0000 HSBC, Europe’s biggest lender by assets, has attracted “billions” of deposits since swooping in to buy the UK unit of Silicon Valley Bank (SVB) for £1 (US$1.23) earlier this month and helping restore confidence among global technology start-ups, CEO Noel Quinn said. “We’ve had significant inflows in the US from SVB’s US clients and investors, and by significant, I mean billions,” he said in a group media briefing on Thursday in Hong Kong. The clients that had had their money in the US and around... https://www.scmp.com/business/article/3215438/hsbc-has-lured-billions-deposits-global-tech-startups-its-ps1-deal-silicon-valley-bank-unit-ceo-says?utm_source=rss_feed https://www.scmp.com/business/article/3215438/hsbc-has-lured-billions-deposits-global-tech-startups-its-ps1-deal-silicon-valley-bank-unit-ceo-says?utm_source=rss_feed Thu, 30 Mar 2023 16:01:07 +0000 Are the world’s hard-hit consumers and businesses about to get some relief as leading central banks start to cut interest rates? As recently as the beginning of this month, posing such a question would have been regarded as wishful thinking. On March 7 – just before the turmoil in the global banking system erupted – traders were betting the US Federal Reserve would raise rates by a further 100 basis points to a peak of just over 5.6 per cent by September, according to Bloomberg data. At the... https://www.scmp.com/comment/opinion/article/3215358/pause-interest-rate-rises-rather-cuts-might-be-best-investors-can-hope?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3215358/pause-interest-rate-rises-rather-cuts-might-be-best-investors-can-hope?utm_source=rss_feed Thu, 30 Mar 2023 13:30:25 +0000 Chinese regulators should reflect on the sudden collapse of Silicon Valley Bank (SVB) by improving their risk detecting ability, said a senior official from the foreign exchange regulator. The failure of SVB and Signature Bank, along with trouble at Credit Suisse and Deutsche Bank in Europe, have highlighted uncertainty in the global banking sector and elevated financial de-risking on Beijing’s work agenda this year. “We should reflect on why crises such as the SVB [collapse] were not foreseen,”... https://www.scmp.com/economy/china-economy/article/3215416/china-must-reflect-collapse-silicon-valley-bank-keep-watchful-eye-liquidity?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3215416/china-must-reflect-collapse-silicon-valley-bank-keep-watchful-eye-liquidity?utm_source=rss_feed Thu, 30 Mar 2023 10:30:14 +0000 Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@scmp.com or filling in this Google form. Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification. While generative artificial intelligence models such as OpenAI’s ChatGPT have made immense progress in recent years, some people – especially non-technical users – still question the efficiency of... https://www.scmp.com/comment/letters/article/3215133/chatgpt-can-be-fine-tuned-serve-us-all-better?utm_source=rss_feed https://www.scmp.com/comment/letters/article/3215133/chatgpt-can-be-fine-tuned-serve-us-all-better?utm_source=rss_feed Wed, 29 Mar 2023 03:30:14 +0000 China’s top anti-corruption agency on Monday launched a new round of inspections into some of the nation’s leading financial institutions, in another indication of a coming regulatory storm. The probe, together with a recently announced regulatory shake-up in financial oversight, shows the urgency with which China’s new leadership team is seeking to defuse risks, including those at ailing small banks, which are often associated with corruption. Authorities are desperate to prevent financial... https://www.scmp.com/economy/china-economy/article/3215136/china-anti-corruption-probe-targets-top-banks-soes-beijing-races-defuse-financial-risks?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3215136/china-anti-corruption-probe-targets-top-banks-soes-beijing-races-defuse-financial-risks?utm_source=rss_feed Tue, 28 Mar 2023 12:15:14 +0000 Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@scmp.com or filling in this Google form. Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification. I am sure it is prudent to be cautious about the possibility of TikTok’s links to the Communist Party, but does anyone doubt for one moment that the Central Intelligence Agency monitors directly or... https://www.scmp.com/comment/letters/article/3214987/tiktok-aside-how-safe-social-media-cia?utm_source=rss_feed https://www.scmp.com/comment/letters/article/3214987/tiktok-aside-how-safe-social-media-cia?utm_source=rss_feed Tue, 28 Mar 2023 06:30:18 +0000 New crisis? What new crisis? It’s too easy to write off the current banking crisis as just another unfortunate event in a long series of setbacks suffered by the world since the 2008 global financial crash. In truth, we still haven’t emerged from the aftershock of 2008. The world has subsequently been battered by the pandemic, the Ukraine war, the inflation shock and the current banking crisis, but they are all genetically linked by the failure of policymakers to deal with contingent risks... https://www.scmp.com/comment/opinion/article/3214950/understand-2023-banking-crisis-look-back-2008-financial-meltdown?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3214950/understand-2023-banking-crisis-look-back-2008-financial-meltdown?utm_source=rss_feed Mon, 27 Mar 2023 13:30:16 +0000 China’s economy and stock markets are expected to see strong growth this year because of the impetus provided by the border reopening and government policies, according to investment guru Mark Mobius. Mobius, who had earlier expressed concerns about China’s capital controls, said he was positive on the country, but believed that the country would be more attractive to foreign investors if Beijing relaxes its control on capital flows. “My view on China has not changed,” he told the Post in an... https://www.scmp.com/business/banking-finance/article/3214948/mark-mobius-still-keen-investing-china-after-recent-hiccup-wants-beijing-relax-capital-controls?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3214948/mark-mobius-still-keen-investing-china-after-recent-hiccup-wants-beijing-relax-capital-controls?utm_source=rss_feed Mon, 27 Mar 2023 06:05:51 +0000 Combing through the wreckage of the 2008 banking crash, and the extraordinary era of quantitative easing (QE) that it launched, I recall two deep and unresolved anxieties: first, that QE measures may have kept the global economy on life support, but did not address the ailment that had brought it to the emergency-room operating table. Second, that rescuing the banks targeted the wrong people. Behind them, the crux of the crisis was tens of thousands of families struggling with mortgages they... https://www.scmp.com/comment/opinion/article/3214901/built-mountain-debt-businesses-could-collapse-under-inflation-and-higher-interest-rates?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3214901/built-mountain-debt-businesses-could-collapse-under-inflation-and-higher-interest-rates?utm_source=rss_feed Sun, 26 Mar 2023 19:30:11 +0000 No two crises are alike. That is true of recent financial upheavals – the Asian financial crisis of the late 1990s, the dot-com crisis of 2000, and the global financial crisis of 2008-09. It is also the case with crises sparked by geostrategic shocks, such as wars, pestilence, famine, and pandemics. Today, we are witnessing a potentially lethal interplay between these two sources of upheaval: a financial crisis, reflected in the failure of Silicon Valley Bank, and a geostrategic crisis,... https://www.scmp.com/comment/opinion/article/3214888/china-quietly-revelling-us-latest-financial-crisis?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3214888/china-quietly-revelling-us-latest-financial-crisis?utm_source=rss_feed Sun, 26 Mar 2023 08:30:19 +0000 The Swiss government was forced to intervene to save Credit Suisse Group AG as the troubled bank wouldn’t have survived another day of trading amid a crisis of investor confidence, Finance Minister Karin Keller-Sutter said. “CS would not have survived Monday,” Keller-Sutter said in an interview with Zurich newspaper NZZ. “Without a solution, payment transactions with CS in Switzerland would have been significantly disrupted, possibly even collapsed.” The impact of a disorderly bankruptcy may... https://www.scmp.com/news/world/article/3214877/credit-suisse-wouldnt-have-lasted-another-day-switzerland-finance-minister-says?utm_source=rss_feed https://www.scmp.com/news/world/article/3214877/credit-suisse-wouldnt-have-lasted-another-day-switzerland-finance-minister-says?utm_source=rss_feed Sun, 26 Mar 2023 01:30:12 +0000 The illusion that the consequences of financial excess can be bought off by ever-increasing monetary indulgence continues to dissipate, as is evident from recent bank runs. But the worst is yet to come. These bank runs will be followed by an epidemic of corporate bankruptcies, as sure as night follows day. Myopic financial markets have been shocked and dismayed by the collapse of SVB and Signature bank in the US, plus the implosion of Credit Suisse, and they will be equally caught off guard when... https://www.scmp.com/comment/opinion/article/3214679/bank-collapses-are-just-start-worlds-financial-woes-indebted-businesses-will-be-next?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3214679/bank-collapses-are-just-start-worlds-financial-woes-indebted-businesses-will-be-next?utm_source=rss_feed Sat, 25 Mar 2023 08:45:12 +0000 For the past year, the most important threat facing the global economy and markets has been the persistence of high inflation and the risk of a sharper-than-expected tightening in monetary policy, according to the findings of Bank of America’s monthly fund manager survey. At the start of this year, a “systemic credit event” – a crisis at the corporate level that triggers severe instability in an entire industry or economy – did not even figure in the top four “tail risks” cited by respondents to... https://www.scmp.com/comment/opinion/article/3214524/wake-silicon-valley-bank-and-credit-suisses-fall-asian-banks-are-no-safe-haven?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3214524/wake-silicon-valley-bank-and-credit-suisses-fall-asian-banks-are-no-safe-haven?utm_source=rss_feed Thu, 23 Mar 2023 07:45:09 +0000 Better data and new technology is needed for central banks to be able to truly judge the risk of climate change to financial stability, according to bankers and regulators. Speaking at the Bank of International Settlements’ Innovation Summit, Erik Thedeen, governor of Sveriges Riksbank, Sweden’s central bank, said bankers and regulators need to deploy new technology to better assess potential risks, from artificial intelligence-assisted text analysis of company disclosures to “granular level”... https://www.scmp.com/business/banking-finance/article/3214485/regulators-need-deploy-ai-gather-granular-data-bid-assess-climate-risk-financial-markets-bankers-say?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3214485/regulators-need-deploy-ai-gather-granular-data-bid-assess-climate-risk-financial-markets-bankers-say?utm_source=rss_feed Wed, 22 Mar 2023 22:00:14 +0000 The US banking sector is “stabilising” after the recent failures of Silicon Valley Bank and Signature Bank rattled the industry, Treasury Secretary Janet Yellen told a lenders’ meeting on Tuesday. The collapses caused a crisis of confidence, with many customers of similarly sized banks withdrawing their money and depositing it in larger institutions – considered too big for the government not to bail them out if they faced failure. But “outflows from regional banks have stabilised” following... https://www.scmp.com/news/world/united-states-canada/article/3214338/yellen-says-us-banking-sector-stabilising-after-svb-collapse-investors-still-wary?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3214338/yellen-says-us-banking-sector-stabilising-after-svb-collapse-investors-still-wary?utm_source=rss_feed Tue, 21 Mar 2023 12:48:17 +0000 Financial turbulence has added a new dimension to this week’s rate-setting meeting of the United States Federal Reserve. Under pressure from a year of relentless increases in the cost of money, cracks have appeared in the global banking system since it last raised its benchmark rate nearly two months ago. Warning signals came from the collapse of three medium-size American banks. Now the emergency takeover of Swiss banking giant Credit Suisse by UBS raises questions. Where will the next crack... https://www.scmp.com/comment/opinion/article/3214225/bank-failures-send-strong-reminder-global-financial-crisis?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3214225/bank-failures-send-strong-reminder-global-financial-crisis?utm_source=rss_feed Mon, 20 Mar 2023 22:23:30 +0000 UBS’s US$3.2 billion rescue of smaller Swiss banking rival Credit Suisse could put thousands of jobs at risk, including positions in Asia, as the lender looks to cut the combined company’s annual cost base by US$8 billion over the next four years. The two companies have significant overlap in terms of their investment banking and wealth management businesses and are Switzerland’s two largest lenders. Combined, they employed nearly 125,000 people as of the end of 2022, including about 23,000... https://www.scmp.com/business/banking-finance/article/3214202/thousands-jobs-risk-ubs-seeks-integrate-credit-suisse-following-us32-billion-rescue?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3214202/thousands-jobs-risk-ubs-seeks-integrate-credit-suisse-following-us32-billion-rescue?utm_source=rss_feed Mon, 20 Mar 2023 22:00:13 +0000 European banking supervisors, including the chief regulator for HSBC and Standard Chartered, sought to reassure bondholders on Monday about the adequacy of a class of riskier debt created to help avoid future bank bailouts after Credit Suisse’s regulator moved to wipe out some US$17 billion of the lender’s bonds. The European Central Bank and the Bank of England separately issued statements outlining the hierarchy for how shareholders and debtholders will bear losses in a bank... https://www.scmp.com/business/banking-finance/article/3214216/hsbc-standard-chartered-regulator-tries-reassure-bondholders-after-credit-suisse-rescue?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3214216/hsbc-standard-chartered-regulator-tries-reassure-bondholders-after-credit-suisse-rescue?utm_source=rss_feed Mon, 20 Mar 2023 17:14:03 +0000 With all the damage being inflicted on financial markets right now, it begs the question whether the activities of hedge funds should be severely reined in or even banned altogether. Hedge funds might make a lot of money for a tiny, privileged few but it has to be weighed against the carnage they cause in terms of increased market volatility and the suffering they wreak when they go for the jugular of the businesses, banks and governments which they target. Highly leveraged short-selling, risky... https://www.scmp.com/comment/opinion/article/3214121/wake-svb-credit-suisse-and-other-bank-troubles-should-hedge-funds-be-banned-avert-financial-meltdown?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3214121/wake-svb-credit-suisse-and-other-bank-troubles-should-hedge-funds-be-banned-avert-financial-meltdown?utm_source=rss_feed Mon, 20 Mar 2023 17:00:08 +0000 Just weeks ago, they were bit players in the giant US banking system. Now, a handful of regional lenders are at the heart of a crisis that is shaken the country and engaged the likes of Warren Buffett and Jamie Dimon. At the last tally in the rapidly evolving turmoil, one of the two collapsed lenders remained for sale while the fate of a third bank looked increasingly bleak. Billionaire investor Buffett was in touch with the Biden administration about potentially providing aid, while smaller... https://www.scmp.com/business/banking-finance/article/3214122/us-banks-are-bumpy-path-troubles-deepen-first-republic-following-collapse-silicon-valley-bank-and?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3214122/us-banks-are-bumpy-path-troubles-deepen-first-republic-following-collapse-silicon-valley-bank-and?utm_source=rss_feed Mon, 20 Mar 2023 04:25:27 +0000 UBS will take over its troubled Swiss rival Credit Suisse for US$3.25 billion following crunch talks Sunday aimed at stopping the stricken bank from triggering a wider international banking crisis. The deal, in which Switzerland’s biggest bank will take over the second-largest in the country, was vital to prevent irreparable economic turmoil spreading throughout the country and beyond, the Swiss government said. The move was welcomed in Washington, Frankfurt and London as one that would support... https://www.scmp.com/business/banking-finance/article/3214097/ubs-agrees-buy-credit-suisse-more-us2-billion-contagion-fears-grow?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3214097/ubs-agrees-buy-credit-suisse-more-us2-billion-contagion-fears-grow?utm_source=rss_feed Sun, 19 Mar 2023 17:31:10 +0000 UBS was up against the clock on Sunday in talks to finalise a mammoth takeover of its troubled rival Swiss bank Credit Suisse and reassure investors before the markets reopen. Switzerland’s biggest bank UBS is being urged by the authorities to get a deal over the line in a bid to avoid a wave of contagious panic on the markets on Monday, according to several media reports. The wealthy Alpine nation’s largest banks have been in urgent negotiations throughout the weekend, with the government,... https://www.scmp.com/news/world/europe/article/3214073/ubs-bank-against-clock-credit-suisse-takeover-talks?utm_source=rss_feed https://www.scmp.com/news/world/europe/article/3214073/ubs-bank-against-clock-credit-suisse-takeover-talks?utm_source=rss_feed Sun, 19 Mar 2023 11:08:38 +0000 Rising US interest rates could trigger financial risks and volatility in developing markets, China’s central bank and senior finance officials have warned, days after the sudden collapse of California’s Silicon Valley Bank (SVB). Addressing an industry forum in Beijing on Saturday, Chinese finance vice-minister Xia Xiande said market entities that had expanded rapidly – such as those with high leverage and mismatched assets and liabilities – faced rising risks, triggering a crisis of confidence... https://www.scmp.com/economy/china-economy/article/3214071/us-rate-hikes-raise-risks-banks-emerging-markets-top-chinese-officials-warn-wake-svb-collapse?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3214071/us-rate-hikes-raise-risks-banks-emerging-markets-top-chinese-officials-warn-wake-svb-collapse?utm_source=rss_feed Sun, 19 Mar 2023 10:19:37 +0000 UBS AG is asking the Swiss government to cover about US$6 billion in costs if it were to buy Credit Suisse, a person with knowledge of the talks said, as the two sides raced to hammer together a deal to restore confidence in the ailing Swiss bank. The 167-year-old Credit Suisse is the biggest name ensnared in the turmoil unleashed by the collapse of US lenders Silicon Valley Bank and Signature Bank over the past week, spurring a rout in banking stocks and prompting authorities to rush out... https://www.scmp.com/business/banking-finance/article/3214045/ubs-seeks-us6-billion-government-guarantees-credit-suisse-takeover?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3214045/ubs-seeks-us6-billion-government-guarantees-credit-suisse-takeover?utm_source=rss_feed Sat, 18 Mar 2023 23:35:08 +0000 Chinese President Xi Jinping’s three-day state visit to Moscow, due to begin on Monday, and the failure of Silicon Valley Bank (SVB) and others are unconnected events. Yet, taken together, they hint at a coming shift in the balance of East-West economic power that could prove unexpectedly profound. SVB’s collapse and the distress engulfing Credit Suisse have revealed once again (as did the 2008 global financial crisis) the vulnerability of market economies to financial system crises. The health... https://www.scmp.com/comment/opinion/article/3213907/financial-crises-spread-west-china-must-shore-its-belt-and-road-strategy?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3213907/financial-crises-spread-west-china-must-shore-its-belt-and-road-strategy?utm_source=rss_feed Sat, 18 Mar 2023 19:30:10 +0000 US regulators are willing to consider the prospect of the government backstopping losses at Silicon Valley Bank (SVB) and Signature Bank if it helps push through a sale, the Financial Times newspaper reported on Friday, citing people briefed on the matter. Sources told Reuters on Wednesday that regulators at the US Federal Deposit Insurance Corp (FDIC) have asked banks interested in acquiring failed lenders SVB and Signature Bank to submit bids by March 17. However, the FDIC has not given... https://www.scmp.com/business/banking-finance/article/3213980/us-regulators-willing-share-losses-sale-silicon-valley-bank-and-signature-bank-reports?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3213980/us-regulators-willing-share-losses-sale-silicon-valley-bank-and-signature-bank-reports?utm_source=rss_feed Fri, 17 Mar 2023 20:25:08 +0000 The market view on where central banks will take interest rates next has whipsawed in the past week. Earlier this month, the market was pricing in the potential for the US Federal Reserve to take the cash rate to 6 per cent this year. However, the shock to the banking sector stemming from the collapse of Silicon Valley Bank (SVB) has led the market to instead price in interest rate cuts of 75 basis points by the end of the year. The uncertain outlook is complicating the investment landscape, but... https://www.scmp.com/comment/opinion/article/3213768/banking-shock-after-svb-collapse-complicates-federal-reserves-inflation-fight?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3213768/banking-shock-after-svb-collapse-complicates-federal-reserves-inflation-fight?utm_source=rss_feed Fri, 17 Mar 2023 17:00:12 +0000 As soon as he had an inkling that a crisis was brewing at the US-based Silicon Valley Bank (SVB), Indian businessman Ruchit G Garg tried to pull out the bulk of his deposits – but found he was unable to transfer the funds. “I did not panic, and told my wife that there might be some concerns, but we don’t have to worry as we have a good business in India,” said Garg, founder and CEO of the Harvesting Farmer Network, an agriculture technology platform that helps smallholder farmers in India sell... https://www.scmp.com/week-asia/economics/article/3213839/will-asias-start-ups-feel-heat-silicon-valley-bank-collapse?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3213839/will-asias-start-ups-feel-heat-silicon-valley-bank-collapse?utm_source=rss_feed Fri, 17 Mar 2023 05:00:14 +0000 UBS Group and Credit Suisse Group are opposed to a forced combination, even as scenario planning for a government-orchestrated tie-up continues, according to people with knowledge of the matter. UBS would prefer to focus on its own wealth-centric stand-alone strategy and is reluctant to take on risks related to Credit Suisse, the people said, asking not to be identified as the deliberations are private. Its smaller rival is seeking time to see through its turnaround after winning a liquidity... https://www.scmp.com/business/banking-finance/article/3213829/ubs-credit-suisse-oppose-idea-forced-combination-svb-collapse-reverberates-globally-sources-say?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3213829/ubs-credit-suisse-oppose-idea-forced-combination-svb-collapse-reverberates-globally-sources-say?utm_source=rss_feed Fri, 17 Mar 2023 02:11:56 +0000 The US’s biggest banks agreed to deposit US$30 billion with First Republic Bank in an effort to stem the turmoil that has sent depositors fleeing from regional banks and shaken the country’s financial system. JPMorgan Chase, Bank of America, Citigroup and Wells Fargo will contribute US$5 billion of deposits each, while Goldman Sachs and Morgan Stanley will kick in US$2.5 billion apiece, according to a statement Thursday. PNC Financial Services, Bank of New York Mellon, Truist Financial, US... https://www.scmp.com/news/world/united-states-canada/article/3213817/first-republic-bank-gets-us30-billion-deposits-big-banks-rescue-effort?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3213817/first-republic-bank-gets-us30-billion-deposits-big-banks-rescue-effort?utm_source=rss_feed Thu, 16 Mar 2023 20:41:27 +0000 The fallout from the collapse of Silicon Valley Bank continues to reverberate not only through the United States’ domestic banking system, but around the world. It led directly to the shutdown of two other medium-sized US banks. High volatility has been experienced by major stock markets. Shares in European banks have been pummelled while Credit Suisse, considered the most vulnerable, plunged to fresh record lows. And by being the go-to bank for start-ups, even some mainland Chinese tech firms... https://www.scmp.com/comment/opinion/article/3213816/svbs-failure-lesson-how-things-can-suddenly-go-so-wrong?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3213816/svbs-failure-lesson-how-things-can-suddenly-go-so-wrong?utm_source=rss_feed Thu, 16 Mar 2023 20:38:06 +0000