Bankruptcy of SVB and turbulence at Credit Suisse melted shares of main financial market indices, according to the “FT”
The collapse of SVB (Silicon Valley Bank), Signature Bank and fears about the future of Credit Suisse caused banks in the United States, Europe and Japan to lose US$ 459 billion (R$ 2.4 trillion) in market value in March, according to the newspaper Financial Times.
The drop was the sharpest since the start of the covid-19 pandemic in February 2020. Rrepresents a decrease of 16% in the valuation of financial institutions.
The strongest decline was recorded in the US KBW Bank index, down 18% over the month. The European Stoxx 600 fell 15%, and the Japanese Topix, retreated 9%.
On Tuesday (14.Mar), the director of Fed (Federal Reserve, the Central Bank of the United States), Michelle Bowman, said that the US banking system is “resilient” and has “solid foundation, with strong capital and liquidity across the system”.
Earlier, on Monday (March 13), the Commissioner for the Economy of the European Union, Paolo Gentiloni, had already said that bankruptcies did not pose a risk of contagion to the European bloc.
The US government acted to secure withdrawals from customers whose deposits were housed in the banks that failed. President Joe Biden also said that would hold those responsible for bankruptcies accountable.
Communiqué published by Credit Suisse Group AG on the 3rd (14.Mar) with reports of “material weaknesses” in its financial statements for the last 2 years, however, it once again brought uncertainty about the spread of a crisis in the global banking system and caused turbulence in the financial market.
The mood cooled when Credit Suisse announced, on the night of Wednesday (March 15), that it would take a loan of US$ 54 billion (about 50 billion Swiss francs) from the Swiss Central Bank through a covered loan line and a short-term liquidity facility.
Even so, the volatility undermined the confidence of banks considered more solid, such as Goldman Sachs, which lost US$ 200 million (R$ 1.1 billion) in operations. US Treasuries also fell at the sharpest pace since 1987.
In Brazil, the Ibovespa, the main index of the B3 (São Paulo Stock Exchange), closed at 101,981.53 points on Friday (17.Mar.2023). The result represents a drop of 1.40% compared to the previous day. In the week, retreated 1.58%.