Last month, the collapse of Silicon Valley Bank, the second-largest bank failure in US history, unleashed broader panic and raised fears the global financial system would seize up. Now, central banks are signaling that their immediate concerns have eased.
The Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank said Tuesday that they would end daily measures to boost the flow of US dollars to lenders around the world. They cited “improvements in US dollar funding conditions” and “low demand” at recent operations aimed at providing liquidity. Starting May 1, those operations will once again be held weekly, a decision made in consultation with the US Federal Reserve, the primary source of dollars.
That meant making greater use of dollar swap lines, or agreements between the Fed and other central banks to provide dollars in exchange for, say, euros or yen. Swap lines are a key instrument in central banks’ toolbox aimed at preserving financial stability and keeping credit flowing to households and businesses. During the 2008 global financial crisis, European banks struggled to obtain US dollars as funding dried up from investors with limited appetite for risk.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Social media raises bank run risk, fueled Silicon Valley Bank’s collapse, paper saysA new academic paper examines the risk of social media on 'distress in banks' and how Twitter conversations amplified the bank run risk ahead of SVB's collapse.
Read more »
Twitter fueled run on Silicon Valley Bank, new paper findsSocial media-fueled bank runs are a new risk to the financial system, and regulators don't know yet how to manage them.
Read more »
Who stopped the rescue of Silicon Valley Bank?Transparency and accountability demand that Congress hold more hearings related to the Silicon Valley Bank (SVB) failure, and at least one more is sure to come. Congress especially needs to get to the bottom of exactly which Federal Deposit Insurance Corporation board member – or members – decided…
Read more »
First Republic Stock plummets 25% as banking trouble deepensShares of First Republic Bank plummeted more than 25% in early trading as the banking crisis continues to ripple through the financial system.
Read more »
Silicon Valley startups set for ‘bloodbath’ as tech investor money runs dry: reportMany startups face the prospect of raising money at a lower valuation — or not at all.
Read more »
Family Comedy Series ‘Mapletown’ In The Works From ‘Silicon Valley’s Chris DiamantopoulosEXCLUSIVE: Chris Diamantopoulos, who starred in HBO’s ‘Silicon Valley’ and is currently on Peacock’s MrsDavis, has co-created and is set to star in a new family comedy series that is being taken out to market: ‘Mapletown’
Read more »