Analysts say the worldwide banking system is facing a crisis of confidence, with the international banking sector entering an uncertain period in the coming days.
"With the exceptional rise in interest rates something was bound to break," bond trader Angus Coote told the ABC."Silicon Valley Bank was bad mismanagement, as is Credit Suisse, but that's beside the point now as return OF capital is becoming more important than return ON capital and the ripple effects will linger for a reasonable period."
In other words, bankers worried about lending to one another in fear they wouldn't get their money back. Professional investor Danielle Ecuyer said the week ahead would be critical in terms of restoring confidence in the global financial system, if indeed that can be done.
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