Huge fear among US investors due to simultaneous sinking of 3 banks : By the end of 2022, more than 51 lakh crore rupees have been lost in America’s banking system. According to US regulations, most banks do not have to keep track of the value of the bond until maturity. Banks are required to report the core holdings of all their brands available for trading in the market.
SBV has now realized this. When a bank fails, it has to sell its bonds. After the stock price falls in the stock market, it affects the bond. In banking parlance, it is known as Unrecognized Losses.
The global financial crisis between 2007 and 2009 was believed to have corrected the flaws in the banks. from Silicon Valley Bank (SVB) on March 9 when 3. 46 lakh crore rupees were withdrawn. Only after that the condition of sinking of this bank was created. It is 1 out of 3 banks in America. Due to the condition of 3 banks sinking together, there is a lot of fear among American investors.
American banks have suffered a loss of Rs 18 lakh crore. Shares of banks in Europe and Japan have also suffered a lot. Shares of Credit Swiss Bank have come down 24%. In America, people are asking that even after 14 years, the banks of America have not made any concerted efforts to deal with the financial crisis. Due to which the banks are facing huge losses. Because of which banks are standing on the verge of bankruptcy.
Between 2007 and 2009, this type of loan was given indiscriminately in America. After that, rules were made to limit the risk. Banks were encouraged to buy government bonds. Banks invested in large amounts of private bonds over the years as bank interest was low. Due to which the banks of America are facing huge losses.
According to US law, bonds are valued only at the time of maturity. Due to which the risk is not known. When there is a crisis on the banks, then the genuine depositors withdraw their money and start running away from the bank. Due to which the banks suffer huge losses. Banks are under pressure to save themselves by selling their assets.
The manner in which an atmosphere of chaos has been created in America. The way stock prices are continuously falling in the US and internationally. Its effect is now falling directly on the banks. Because of which investors are withdrawing their deposits out of fear.