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Kabul: The collapse of Silicon Valley Bank and Signature Bank in the US sent ripples through the financial markets across the world. Stock markets sank in Asia and faltered in Europe, with banks sliding on contagion fear after the collapse of two lenders.
Bank stocks fell more than 6 percent, with Commerzbank, BAWAG Group and Banco BPM among the biggest losers in the market.
Shares in Credit Suisse also fell 15 percent in early trade, and Unit Credit lost 9 percent, while Deutsche Bank and Raiffeisen Bank both fell 7 percent.
The bankruptcy comes despite news that Britain’s HSBC, one of the world’s largest banks with assets worth about $2.9 trillion, has agreed to bail out SVB’s UK branch for a symbolic £1 from deposits to protect customers as part of the deal.
After announcing this news, HSBC Bank saw a 3.5% decrease in its share value.
“We’re seeing a withdrawal of liquidity — something you’d expect after a credit event like the one at Silicon Valley Bank,” Hugh Bethgate, head of investment at Atomos, told Bloomberg.
Robert Kiyosaki, American analyst best known for his successful prediction of the 2008 Lehman Brothers’ collapse, has claimed that Credit Suisse is the next bank at risk of collapse.
“The problem is the bond market, and my prediction, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse,” Mr Kiyosaki told Fox News.
“The US dollar is losing its hegemony in the world right now. So they’re going to print more and more and more of this… trying to keep this thing from sinking,” he added.
Mr Kiyosaki said he is “concerned” about Credit Suisse – the world’s eighth largest investment bank – due to the “perfect storm” caused by the bond market crash and the upcoming retirement of his generation.
