Recent events, such as First Citizens BancShares’ acquisition of a portion of Silicon Valley Bank and UBS’ purchase of Credit Suisse, along with regul
Recent events, such as First Citizens BancShares’ acquisition of a portion of Silicon Valley Bank and UBS’ purchase of Credit Suisse, along with regulators’ willingness to provide liquidity and backstop facilities, have reassured investors that the current banking crisis is under control.
Furthermore, the lack of fresh negative news regarding the spread of the crisis to other financial sectors has been viewed as positive. However, the overall tightening of credit conditions, including interest rate hikes by the Federal Reserve, increases the likelihood of a US recession. Additionally, the prospect of tighter regulations for banks means that the banking sector could continue to face challenges in the near future.
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