The banking and financial crisis has not yet been overcome

WirtschaftsWoche: Mr Schularick, the bank quake seems to be over as quickly as it came. The central banks guarantee customer deposits, provide struggling institutions with liquidity and ban the risk of infection. That’s it?
Moritz Schularick: I think it’s too early to tell. We have to anticipate further problems. The hunt for institutes with shaky financing models is on. And it’s likely that we’ll see more disruption, that some other financial institutions get into trouble. When interest rates rise so quickly, banks and hedge funds don’t go unnoticed – then transactions that were very lucrative yesterday are no longer worthwhile today. We should therefore be prepared for more financial companies to report problems.