“Risk manager Grasshoff attests resilience to banks” – this is how the Börsen-Zeitung titles an article about the FIRM position paper “Bracing for Impact”. FIRM CEO Gerold Grasshoff, together with co-author Til Buender (BCG), has been intensively studying developments in the banking market over the past few months. They explore the question of whether the danger of a new banking crisis is looming.
Although uncertainty remains high following the bank failures of Silicon Valley Bank, Signature Bank and Credit Suisse, the financial industry appears robust and better prepared than in the 2007/2008 financial crisis. Nevertheless, there are many dangers.
The role of social media is coming into focus. Grasshoff: “If depositors have high deposits but can get higher interest rates at other banks and there are also doubts about the crisis-proofness of their own bank, funds can be outflowed very quickly. The bank run is then more like a bank sprint.” Whether tools from the old risk management toolbox are suitable for this must therefore be critically questioned. This is a topic that FIRM will be focusing on in the coming months.
Click here for the article.