Current banking crisis has potential to be next GFC

The CEO of ANZ has stated the present banking disaster has the potential to grow to be one other international monetary disaster.

“We shouldn’t be surprised that things like this happen, it’s a crisis for some obviously, but is it a financial crisis? Who knows. Does it have the potential to be one? Yes, it does have the potential, ANZ CEO Shayne Elliott said this week.

But he said it was premature to assume the current condition could result in “another GFC”, referring to the worldwide monetary disaster round 15 years in the past that plunged the world’s main superior economies into their worst recession because the Great Depression within the Nineteen Thirties.

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Australian banks didn’t endure as a lot as these within the US and Britain in the course of the 2008 disaster, thanks partially to tighter lending requirements and a extra resilient dwelling economic system.

“This is a different issue. This is really to do with the global war on inflation and how central banks are raising rates very quickly in order to combat that, and that has casualties,” Elliott stated.