U.S. media: The banking industry is not out of the woods after the closure of two famous U.S. banks
Overseas Network, April 26 (Xinhua) According to CNN’s report on April 25, after the closure of Silicon Valley Bank and Signature Bank, the well-known American banks, banks all over the country “sounded the alarm”. After the related turmoil, industry insiders said recently that the Fed’s interest rate hike will continue to test banks, and the US banking industry has not yet escaped the predicament.
According to reports, after the US federal government announced that it would provide guarantees for deposits exceeding the $250,000 limit, this to a certain extent eased the panic among banks and depositors after the collapse of Silicon Valley Bank. Yet as many U.S. banks struggle to recoup deposits lost in the Silicon Valley Bank debacle, more Americans are tapping into their bank savings to pay for the higher cost of living.
Last week, Moody’s Investors Service lowered the ratings of 11 regional banks in the United States. Anna, Moody’s managing director, said that it is rare to downgrade the ratings at the same time. She believes that the U.S. banking industry is “not out of the woods yet.” According to CNN, the Federal Reserve’s year-long interest rate hike is aimed at curbing inflation, but this has accelerated the banking crisis to a certain extent. If the Fed continues to raise interest rates at its upcoming meeting, it will be another test for the U.S. banking industry. (Overseas Net Zhang Ni)