Published on Monday, April 15, 2024

Global | One year on from SVB

Last March marked one year since the collapse of SVB, a milestone that began one of the largest episodes of banking stress in the history of the United States. With some structural issues still unresolved, especially in terms of supervision or liquidity, banks´ exposure to commercial real estate is currently under focus.

Key points

  • Key points:
  • The fall of SVB was the catalyst for the market to focus its attention on other banks, all of them with a common denominator: a large base of unsecured deposits coupled with unrealized losses in their bond portfolios.
  • Scant progress has been made in terms of supervision, regulation or liquidity management in times of financial tension.
  • The focus is now on the evolution of the commercial real estate sector, which has been significantly affected by the rise in interest rates, especially in the office segment.
  • The less restrictive monetary policy expected in the second half of the year should ease the strain on commercial real estate and smooth out potential increases in bank NPLs.

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