March 17, 2023
United States:
Fed Alarms at SVB Began More Than Year Ago as Examiners Changed
Just over a year before Silicon Valley Bank’s collapse threatened a generation of technology startups and their backers, the Federal Reserve Bank of San Francisco appointed a more senior team of examiners to assess the firm. They started calling out problem after problem.
As the upgraded crew took over, it fired off a series of formal warnings to the bank’s leaders, pressing them to fix serious weaknesses in operations and technology, according to people with knowledge of the matter.
Europe:
ECB’s Hawks Regroup to Speculate Rate-Hiking Isn’t Done Yet
A trio of hawkish European Central Bank policymakers came out in force to restate the case for hiking interest rates further, once financial-market volatility subsides.
In the wake of a 50 basis-point increase accompanied by no clear signal on future moves, governors from Estonia, Lithuania, and Slovakia suggested the economy still needs another phase of tightening after global turmoil fades.
Asia:
China Cuts Reserve Requirement Ratio To Boost Economy
China cut the amount of cash banks must keep in reserve at the central bank in an effort to support lending and strengthen the economy’s recovery from pandemic restrictions and a property market slump.
The People’s Bank of China reduced the reserve requirement ratio for almost all banks by 0.25 percentage points, effective from March 27, it said in a statement on Friday. The PBOC last cut the RRR in December, by the same magnitude.
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