What is the banking crisis of 2023?

The crisis the WSJ is alluding to is the short-term “crisis of 2023.” The industry, however, is in the throes of the “ Crisis of the ‘20s, ” a crisis that will last the entire decade. This crisis touches banks’ products, technologies, people, processes, and the political climate. Here are five elements of the Banking Crisis of the ‘20s:

Are global banks heading towards a major crisis?

Global banks are heading towards a major crisis after two US banks failed, Credit Suisse sought government support and the US banks agreed to offer a $30bn rescue package. Fears of contagion have prompted action from the US Federal Reserve, the US Treasury, and the private sector, but it remains to be seen if the damage can be contained.

Will central banks raise monetary policy rates in 2023?

Investors expect central banks to raise global monetary-policy rates to almost 4 percent through 2023—an increase of more than 2 percentage points over their 2021 average.

Will 2023 go down in the history books?

2023 may go down in the history books as the year America lost faith in its banks. Over the course of a few weeks in the spring of 2023, multiple high-profile regional banks suddenly collapsed: Silicon Valley Bank (SVB), Signature Bank, and First Republic Bank.