FOLLOWING the collapse of two American lenders in March, a worldwide banking crisis ensued, causing concerns of contagion and impacting numerous economies, reports Bangalore's Marine Insight.
To mitigate the situation, the US Federal Government and other agencies implemented emergency measures to support the financial system.
However, stress within the banking sector has escalated, leading to heightened chances of a recession in the US within the next 12 months, as highlighted by Goldman Sachs.
These developments carry significant implications for the market.
'The Federal Reserve has announced that it will stop raising interest rates after the last hike of 25 basis points last week, and the European Central Bank is also becoming cautious,' said container xChange CEO Christian Roeloffs.
'The bank crisis, compounded by the troubles in the real estate sector, negatively impacts interbank lending. Higher cost of interbank lending will lead to tight access to credit for the real economy, and this, in turn, leads to higher risk of recession.'
'This vicious circle of increasing interest rates, rising instability in the banking sector, tightened access to credit, falling commercial real estate values, and eventual recession is underestimated by the overall market and has significant implications for supply chains,' said Mr Roeloffs.
SeaNews Turkey
To mitigate the situation, the US Federal Government and other agencies implemented emergency measures to support the financial system.
However, stress within the banking sector has escalated, leading to heightened chances of a recession in the US within the next 12 months, as highlighted by Goldman Sachs.
These developments carry significant implications for the market.
'The Federal Reserve has announced that it will stop raising interest rates after the last hike of 25 basis points last week, and the European Central Bank is also becoming cautious,' said container xChange CEO Christian Roeloffs.
'The bank crisis, compounded by the troubles in the real estate sector, negatively impacts interbank lending. Higher cost of interbank lending will lead to tight access to credit for the real economy, and this, in turn, leads to higher risk of recession.'
'This vicious circle of increasing interest rates, rising instability in the banking sector, tightened access to credit, falling commercial real estate values, and eventual recession is underestimated by the overall market and has significant implications for supply chains,' said Mr Roeloffs.
SeaNews Turkey