The 2023 banking turmoil: "Déjà vu all over again"?

The March 2023 banking turmoil was the most significant stress in the European and US banking systems since the Great Financial Crisis in 2008. It started with the forced takeovers of Silicon Valley Bank, First Republic and Signature in the US, which were organized after an unprecedented digital run and culminated in the sale of Credit Suisse, a GSIB, to UBS. The bank failures, while having largely distinct causes, triggered a wave of question marks about the resilience of banks, banking systems and financial markets across multiple jurisdictions. In response, wide-scale public support measures were deployed by some jurisdictions to mitigate the impact of the stress. In a medium term perspective, more than 30% of banks – including some of the world”s largest – would be vulnerable if the global economy entered a period of stagflation, according to the IMF”s October 2023 GFSR (+).

These events and the unresolved vulnerability going forward raise a number of major policy issues, which will be discussed by internationally renowned academic researchers, policy makers and financial practitioners following an introductory presentation.

Scientific coordination: Martin Scheicher, SSM/ECB and SUERF Fellow.