US bank failures Spring 2023 : Part One: Banking stories for seventy-year-old János Száz

Király, Júlia and Mikolasek, András (2023) US bank failures Spring 2023 : Part One: Banking stories for seventy-year-old János Száz. ECONOMY AND FINANCE: ENGLISH-LANGUAGE EDITION OF GAZDASÁG ÉS PÉNZÜGY, 10 (3). pp. 233-250. ISSN 2415-9379

Preview

Text 233-250KiralyMikolasek_E.pdf - Published Version Download (1MB) | Preview

Abstract

In the first part of our two-part study, we summarize the parallel history of the four failed US banks, carefully analysing financial data from the pre- and post-COVID periods. The banks were unable to adequately manage the liquidity shocks caused monetary cycles (first easing, then brutal tightening). Their distorted business model, i.e., their reliance on closely affiliated customers and in particular uninsured deposits, left them vulnerable. But the panic itself was triggered by misinterpretation of HTM portfolios. Second part of the paper, on one hand deals with the in-depth analysis of risks and failures in risk management, on the other hand, discusses some widespread (mis)diagnoses and remedies.

Actions (login required)

Edit Item