XLF - Looking Deeper At Risk Factors In The Banking System
2024-02-23 04:47:48 ET
Summary
- The FSOC has identified four key risk factors facing the economy in the near term.
- The four identified risks are minor compared to other risk factors facing the financial system.
- The Federal Reserve's interest rate policy and the impact on banks' assets and liquidity levels are bigger risk factors.
- Unrecognized losses from marking illiquid securities to market and the maturity of commercial real estate debt add to the vulnerability of the banking system.
Over the past twelve months, rising rates, inflation, geopolitical challenges, and other sources of economic stress have challenged the stability and integrity of the financial system. By and large, it remains business as usual and major challenges have been overcome, aside from isolated examples such as Silicon Valley Bank's insolvency....
Looking Deeper At Risk Factors In The Banking System