Two economists underestimated the repercussions of the bankruptcy of some banks on the US economy itself and the global economy in general, pointing out that the strong intervention by the US stakeholders to absorb the repercussions that may bring to mind the mortgage crisis that hit the US, and behind it the world in 2008, Relatively reassuring markets. The two experts attributed the decline in European stocks by more than 3 percent since the outbreak of the Russian-Ukrainian war to several other factors such as the crisis of the American march, the decline in oil prices in global markets, in addition to the crisis of the troubled Swiss bank Credit Suisse, which has been suffering from multiple problems for a while. Most notably, the lack of confidence and poor results. In this context, Dr. Ragab Al-Ismail, professor of economics at Qatar University, described in a statement to Qatar News Agency (QNA) the bankruptcy of some US banks in the recent period as individual and expected, given that Silicon Valley Bank deals with startups and companies operating in technology sector, says: "It is natural that the bonds of these banks are high-risk, given their association with risky companies in and of themselves. Everyone knows that these emerging companies operate in the technology sector, and therefore the risk rates will be high.". Dr. pointed out. Ragab Al-Ismail indicated that the aforementioned bankruptcy will not have a significant impact on the American or global economy, and that it will be limited, especially since the bankrupt bank’s ranking in the United States is the sixteenth, and if compared to the size of the American domestic product, it is negligible. He said: The reassurance measures taken by the United States of America by mobilizing a federal guarantee worth 175 billion dollars are kept in the safes. "Silicon Valley" For the accounts of emerging institutions and investors, it contributed to calming the markets, considering at the same time that the action taken by the British government to acquire a British bank over the bank’s branch in Britain had a role in stabilizing the markets. And regulators in the United States of America took emergency measures early in the crisis, following the collapse of the Silicon Valley bank, including guaranteeing uninsured deposits with the bank. Potential buyers are often hesitant when troubled companies try to sell assets, partly because any pre-bankruptcy deal can be canceled if the companies later seek Chapter 11 bankruptcy protection within a certain time frame. It is worth noting that the investment bank and the venture investment company of the (SVB) financial group are separate from Silicon Valley Bank. The (SVB) financial group had announced that it was studying strategic alternatives to its assets, but it did not disclose bankruptcy as one of the possible options.
The concerned authorities have not yet made a final decision on the path they will take, and they are still trying to find investors to buy the group’s assets, without submitting a request for bankruptcy, which is also an option. The professor of economics at Qatar University ruled out that the region’s banks would be exposed to the accounts of the American banks that declared bankruptcy. Dr. drew. Al-Ismail indicated that the crisis of the American march will have a greater impact and impact on the global economy than the aforementioned individual bankruptcies. He pointed out that bankruptcies were a wake-up call for central banks to tighten control over the lending policies of emerging enterprises working in the field of technology, given the high degree of risk and bankruptcy in their economic life cycle. The bankruptcy case of Silicon Valley Bank raised a crisis regarding the possibility of collapses in the global economy, and a number of banks were exposed to the same fate, especially since there are economic impacts occurring in the world as a result of the Russian-Ukrainian crisis, and the repercussions of the emerging Corona virus. And the bankruptcy of the American Silicon Valley Bank, which specializes in financing emerging technology companies, was announced last Friday, in a sudden event without any expectations, amid the bank’s announcement that the interest rate hike by the US Federal Reserve is the reason for this bankruptcy, and it appears that the Swiss Credit Suisse Bank will catch up. In the American Bank, in light of fears of the impact of high inflation around the world in achieving several economic collapses that will severely affect developing countries. And European stocks fell by about 3% at the end of the trading session on Wednesday, the fifteenth of March, amid a decline in all sectors due to the Credit Suisse crisis. In turn, Tamer Hassan, a financial analyst, said in a statement to Qatar News Agency (QNA) that although the crisis appears as a snowball that grows with every day, it is not in the form that happened in 2008, despite his acknowledgment that there are greater concerns for the European and Asian banking sector, saying : "I believe that the Silicon Valley crisis and the losses of American banks are book or paper losses that will end after an expected stabilization of things with the containment of the crisis". He added that the impact will be greater on the European banking sector due to the exposure of most of its banks to the US market, and also because most European banks do not have a legislative structure like America. He pointed out that the impact of the crisis on the Arab region will be limited and insignificant because there is no bank in it that has a direct relationship with the Silicon Bank, expressing his belief that if the crisis widens and grows and affects the dollar and interest rates, this will extend to the region, because currencies and banks in the Gulf are linked to the dollar, and raise rates. American interest.
