It is still too early to know how the banking situation will evolve, but it is possible that American regional banks will find themselves in a "
crisis that drags on
", warned Wednesday Larry Fink, boss of the American giant of asset management. BlackRock.
The sudden rise in rates intended to fight inflation after years of very accommodative monetary and budgetary policies is the “
price to pay for years of easy money
”, he believes in his annual letter to investors.
This rise also exposed "
cracks in the financial system
", which led to the failure of SVB and two other banks.
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“
It is still too early to know the extent of the damage
,” says the manager.
"
The response from regulators has so far been swift and decisive action has averted the risks of contagion
."
But where the Fed has tightened policy in the past, it has sometimes led to "
spectacular financial failures
," such as the US Savings and Loans crisis that "worn
on
" in the 1980s and 1990 and led to the bankruptcy of more than 1000 establishments.
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"
We don't yet know if the consequences of easy money and regulatory changes will ripple through the entire U.S. regional banking sector (as in the savings bank crisis), with further foreclosures and closures to come
,” warned Larry Fink.
For him, it seems in any case already "
inevitable
" that some banks must reduce the amount of loans they grant in order to strengthen their balance sheet and that the requirements in terms of capital are reinforced.
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