The American banking shock has the ability to create a financial crisis

According to Iran Economist From the Sydney Morning Herald The sudden collapse of the Silicon Valley bank earlier this month rattled global markets, prompting UBS to buy rival Credit Suisse and drawing attention to what U.S. officials are doing to prop up Wall Street. And they will prevent the spread of this crisis.

Deutsche Bank is the latest bank to fall victim to this crisis. The financial giant’s shares fell 8.5% on Friday as investors worried about rising costs of insuring its bonds against the risk of default.

In this link, Shayne Elliott, the head of Australia’s fourth largest bank, said in a statement published on the bank’s website: The American banking shock has the ability to create a financial crisis; However, it is still too early to announce this.

At the same time, he said: The causes of the current financial crisis in America are very different from those that caused the 2008 financial crisis.

Elliot added: the financial crisis of 2008 was related to the quality of assets and lending of banks; While now this risk does not exist and the problem is different.