ASSESSMENTS

Banking Sector Fragility Will Lead Central Banks to Ease Up on Monetary Tightening

Mar 29, 2023 | 19:22 GMT

An SVB Private ATM outside of a Silicon Valley Bank branch March 20, 2023, in Santa Monica, California.

An SVB Private ATM outside of a Silicon Valley Bank branch March 20, 2023, in Santa Monica, California.

(PATRICK T. FALLON/AFP via Getty Images)

Government intervention in the United States and Switzerland has helped limit the risk of an imminent systemic banking crisis, but investor sentiment remains fragile and financial sector risks remain, which will likely force central banks to ease up on, and in some cases even reverse, monetary tightening this year....