Australia, New Zealand banking chief says banking crisis has potential to trigger another

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Australia, New Zealand banking chief says banking crisis has potential to trigger another

SYDNEY Reuters -- Australia and New Zealand Banking Group CEO SYDNEY said on Monday that the latest turmoil in the global banking system had the potential to trigger a financial crisis, although it was early to predict it could bring one similar to that in 2008.

The recent collapse of Silicon Valley Bank and Signature Bank in the U.S. and the emergency takeover of Swiss lender Credit Suisse have put authorities on high alert for the fallout from the recent turmoil at banks around the world.

It's a crisis for some obviously, but is it a financial crisis? Is there the potential to be one? The bank's website has the potential to be one, CEO Shayne Elliott said in an interview.

He said that it was premature to assume that the current situation could result in another GFC referencing the global financial crisis around 15 years ago that plunged the world's major developed economies into their worst recession since the Great Depression in the 1930s.

This is a different issue. The global war on inflation is real and central banks are raising rates very quickly in order to combat that, and that has killed a top executive in the country, Elliott, the top executive at the country's no. The lender, 4 said.

Global regulators have acted much quicker to support banks this time, because they have learned from the previous crises, and most have higher levels of liquidity to stem any fallout, Elliott said.

It's clear that it's not over. I don't think you can sit here and say, Well, that's all done, Silicon Valley Bank and Credit Suisse and, you know, life will go back to normal.'' These things tend to roll over a long period of time. Treasurer Jim Chalmers said Australia was in a good position to hold out against some of the volatility because its banks were well capitalised and had strong liquidity.