While the recent collapse of Silicon Valley Bank and the issues surrounding Credit Suisse have shaken investor confidence, a repeat of the 2008 financial crisis appears to be unlikely, one analyst says.
SVB customers began withdrawing their deposits, a situation known as a bank run, forcing SVB to sell its assets at a loss due to higher interest rates.While the risk of a bank collapse in Canada is not zero, experts argue that the Canadian banking sector is"In the 2008 financial crisis, there were a lot of bad loans hidden on the books, they were on the balance sheets, put into specific special purpose investment vehicles that were hidden.
Meanwhile, some of the largest central banks in the world, including Canada, have tried to reassure markets in the wake of the collapse of SVB and Signature Bank, with UBS Group recently purchasing rival"So I think people just should keep their money in the bank where it is and, at least in Canada, that's my view here," he said.
Watch the full interview with Andreas Park at the top of the article. With files from CTVNews.ca Writer Tom Yun, The Associated Press and Reuters.
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