Italians are afraid of the great international banking earthquake. Let’s see who is at risk on current accounts.
The great bankruptcy of two major banks american is scaring the Italian current account holders. Silicon Valley Bank is a Californian bank that specializes in financing startups technological. Its resounding bankruptcy has thrown another bank into crisis.
The collapse of the trust it was very strong on the markets. Stock exchanges have begun to enter a strong state turbulence and Italians wonder if their banks are at risk. The problem is that the banks are linked together by a dense network of interests common. It’s normal for a bank invest in many other banks: institutions globally are connected by an invisible spider web that stabilizes each other but that can make it very easy the domino effect.
Banks are very interconnected
All these connections cause when a large bank collapses many others can follow. It is no coincidence that the bankruptcy of SVB also forced the British central bank to ask for the state of insolvency for its UK branch. In short, the impact on the banking system was strong. In 2008 with Lehman Brothers there was a great global contagion and it is feared that the same thing could happen today. However the Italian banks they shouldn’t be affected from what is happening in the United States. SVB despite being a large bank is not capable of having a real impact systemic.
So much nervousness
However, given the scenario and the precedents, del nervousness on the financial securities of Italian banks is physiological in such a moment, but in Europe and in Italy the rate hike by the ECB could have an impact on the banking system similar to that of the United States. But it deals with a profoundly different context and, at least for nowthe rise in interest rates does not seem able to lead European and Italian banks to a situation of risk similar to that involving some US banks.
Over United States as difficult as the situation is, only two banks have currently gone bankrupt while the others are either reacting well. But it is better not to let your guard down: the dynamics of the contagion effect are also mysterious and therefore it is a situation that will be monitored in the coming weeks and in the coming months.
For our peace of mind it is important to remember that deposits up to €100,000 are either protected by the state. Therefore, even if an Italian bank were to fail, within the limit of €100,000 each current account is protected and will be reimbursed.
