American Banks May Be Failing But The Effects Are Being Witnessed Globally (infographic)

It was not too far back in time that we heard about the effects linked to the failure of the Swiss bank called Credit Suisse. After all, it was a part of the world’s most valuable banks across the European region.

Now, the leader has gone down further below with a ranking of 146 present on the global bank list that features massive market capitalizations. They lost a staggering 19% of the market capital and were even offered a lifeline by another lender owned by the Swiss called UBS.

The deal was made final last Sunday and its stock fell even lower to $3.2 billion in terms of the massive takeover. So many assumed that the bank was sold for a low-priced figure considering the situation going on right now.

Now, the latest update on this front has to do with the Credit Suisse being slammed in a rough manner thanks to the effects felt by the likes of two mega American banks failing. This entails both Signature Bank and Silicon Valley Bank.

Therefore, Credit Suisse found itself to be in an awfully vulnerable position with a lot of scandals to follow. Did we mention the likes of having customers flee far away in the recent few years?

What really made these banks fall down to their knees was customers really struggling with stagflation in the nation and that was paired with massively increasing rates of central banks. And as you can imagine, that further added to expenses and affected the entire banking sector, and led to more losses before the American bailout seen in the industry.

Today, Credit Suisse says it’s in its own dilemma and that has turned into a huge international banking fiasco. Data from Companymarketcap showed how banks globally were losing huge chunks of market capital in the past, ever since American bailouts were taking place.

Out of the world’s leading 100 banks, just a few weren’t registered in terms of losses until the incident on March 11. And amongst those, the biggest are those hailing from China as was seen with ICBC. The latter is the world’s third biggest bank and it entails a market capital that increased by nearly 4% since March 11.

Moving on to places like Japan, the top three losses from banks included entities like Mitsubishi UFJ which stood between 7.5% and 10.5%. Meanwhile, the fourth largest happens to be going through some major ups and downs.

Other nations where single banks were continuing to grow include the likes of Asian countries such as Saudi Arabia and Indonesia. But other banks hailing from regions in Europe, Australia, the US, Canada, and more Asian nations had huge losses building up.

The trends are definitely fluctuating and American banks are paving the way to some very uncertain financial conditions that the world may not be a fan of at this moment in time.

H/T: Statista

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