Bank in for the Long Run

It has been a turbulent couple of weeks for global banking stocks, first with the collapse of Silvergate Bank, then the bank run on Silicon Valley Bank and fallout of First Republic and forced takeover of Credit Suisse by its larger rival UBS. The latest victim is Deutsche Bank to which the bank jitters is now spreading.

Lack of diversification in customer base and/or lapses in risk and compliance managements have led to their downfalls, for example Silvergate was a crypto bank and Silicon Valley Bank served mostly technology startups, while Credit Suisse suffered severe losses in 2021 from the Archegos and Greensill financial scandals. The contagion is threatening to spread as high interest rates depressed financial assets that banks are forced to relinquish at great losses to improve their liquidities when panicked depositors run on the banks.

The bank crisis is going to slow down credit and lending activities, as banks become more wary about their liquidities, lending a hand to the Fed and doing the heavy lifting in taming the sticky inflation.

Despite the short-term headwinds triggering by the relentless rate hikes by the Fed since early last year, I remain confident on the long-term viability and prospects of my local banking trios $DBS GROUP HOLDINGS LTD(D05.SI)$ $OVERSEA-CHINESE BANKING CORP(O39.SI)$ and $UNITED OVERSEAS BANK LIMITED(U11.SI)$ , which I stay invested as they are well-capitalised with strong fundamentals and robust balance sheets, capable of withstanding the crisis and emerging stronger over time.

@CaptainTiger @TigerWire @TigerStars @MillionaireTiger @TigerEvents 

# Regional Banks Recover From Crisis?

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