US banks collapse sparks jitters of another global financial crisis

Silicon Valley
Silicon Valley Bank (Source: Special)

Jakarta, IO – Three commercial banks in the United States (US) — Silvergate Bank, Silicon Valley Bank and Signature Bank — have collapsed in just a week, raising the concern of contagion that may ultimately spark another global financial crisis like the one in 2008, reported Katadata, Thursday (16/3).

However, US President Joe Biden emphasized that the country’s financial system that is still robust and safe. US financial regulator has also guaranteed customers’ deposits and came up with a “firewall” program to effectively provides assistance to other banks to protect them from a bank run.

“Your savings will be available when you need them,” Biden said in a statement to boost confidence on the security of the US financial system.

Bankrate analyst Matthew Goldberg said concerns about the stability of the banking sector have diminished due to significant regulatory reform. He is of the view that so far people’s daily lives in general have not been affected.