Is there an unfolding banking crisis? What lies behind recent failures, what are the implications? - ONLINE ONLY

On March 10, the biggest failure of a US bank since the global financial crisis played out in real time as a major lender to the tech industry succumbed to a classic bank run. Silicon Valley Bank’s (SVB) customers were frantically pulling their money before US regulators intervened to take control. But the collapse panicked markets, piling pain on weaker financial institutions already struggling with the unintended consequences of soaring interest rates and self-inflicted wounds. Since then there have been a number of other US regional banks in trouble – Signature Bank, First Republic Bank – and most importantly, because of its global significance, Credit Suisse – which has now been taken over by UBS. All of this in the space of a few weeks.

There are a number of questions worth asking as the current crisis continues to unfolds. How did this happen? What was the regulatory response? What were the implications in the financial markets? What does it mean for interest rates? Will this crisis spill over into the real economy? And is this anything like the GFC or just a confidence crisis?

Fortunately, we are lucky enough to have Andrew Lilley, Chief Rates Strategist at Barrenjoey, to help us answer all these questions any many more. Andrew is highly sought after for his views on financial markets and the economy. Andrew has also had a very interesting career to date, including experience working on Facebook’s Libra, which was coincidentally bought by a Bank which went on to fail – Silvergate. 

About the Speaker

Andrew Lilley is the Chief Interest Rate Strategist at Barrenjoey. Andrew previously worked in the US as a research scientist in cryptocurrencies and web3 at Meta. Prior to this he completed his PhD in Economics from Harvard, worked as a teaching fellow at Harvard Business School, and also as an interest rate strategist at UBS.

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