The recent failures of major US banks could be the beginning of more significant financial stability problems. This was reported on the website of the International Monetary Fund (IMF).
It is noted that the collapses of large banks in the US to date have had only a moderate effect on credit conditions. However, this may be “a prelude to more serious and rooted systemic financial stability problems.”According to the fund, the maintenance of high interest rates by the US Federal Reserve System will lead to serious complications in the country’s banking system and non-banking organizations. The IMF stressed that tightening financial conditions could trigger an increase in bankruptcies. It can also lead to a deterioration in the quality of loan portfolios and increased stress situations for organizations with a high level of debt.According to the IMF, the longer interest rates remain high, the greater the likelihood of crises. Earlier, the head of Berkshire Hathaway, Warren Buffett, said that the management of American banks that went bankrupt this spring should be held accountable for their actions that led to the financial crisis. He cited the example of First Republic Bank, which offered non-government secured mortgages at fixed rates, sometimes for ten years. The billionaire himself rated such an offer as insane.