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By Paras ANAND, CIO at Artemis Investment Management
The banking crisis we have seen over the past six months is a direct consequence of the pace and rate of interest rate policy and it raises two big questions for investors. Is the crisis systemic? And what impact will it have on central bank policy?
The crisis revolves around banks' vulnerability to deposit flight. The availability of higher paying money market alternatives has led to banks like America's SVB having to crystallise losses on their asset base. That is where we have seen banks disappearing or being taken over. We still sit in the shadow of the banking crisis 15 years ago and so the thing that people worry about most is contagion. What has happened in the US has sharpened the...
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