Opinion: US banking crisis does not threaten Belarus
Mikhail Kovalev, Doctor of Science in Physics and Mathematics, Professor of the Department of Analytical Economics and Econometrics of the Faculty of Economics of the Belarusian State University, shared his opinion with the sb.by portal
“The US is trying to reduce the losses of American banks due to the raid of depositors via money emission. In conditions of sufficiently high inflation, this is very bad, further spurring the rise in prices. If the panic in the market is not quickly extinguished, it can be assumed that Biden will lose the presidential election ahead of schedule, e.g., to Trump,” the Professor believes.
It is unlikely that what is happening in the United States can spread to the whole world. Many countries, including Belarus, strictly monitor financial discipline. Another thing is that inflation in the EU member states continues and its negative impact on the economy is huge, and then there are rumours about a banking crisis, so there is little good. However, even the negative course of events will not particularly affect Belarus. The West has erected an ‘iron curtain’ between its financial system and ours by its policy of sanctions. Today we have closer ties with another world leader: China.”
As far as Western banks are concerned, their market value has collapsed by a gigantic $0.5 trillion in just a week, leading to the absolute dominance of the Chinese banks in the top-10 which are nowadays the largest and most expensive.
The decrease in the value of shares of Western banks adds to their problems, because many of them raise funds on the security of their high value, and this is a very big loss for the owners of shares.
