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Are we facing the worst bank crisis ?
My thoughts are that we are heading towards more bank defaults in coming months. Reason being indefinite amount of stimulus packages & companies around the world getting insolvent.
Banks usually rely on funds and when you have estimated figures of GDP growth and those estimated figure are used to make loans and amount is recovered in interest and spent in other liquid assets and pay off the Treasuries to settle the yields.
But as banks have spent lot more in stimulus to make sure we don't face another recession & mostly all the banks have gone in the negative territory when it comes to interest rates and GDP assumptions for next few months has gone in negative territory.
How could we get economies back on track as We have still not manage to get the proper way to get out of this pandemic & Travel and Hotel industry are still looking at more packages to bail them out of this situation.