The Banking Executive Magazine - March 2023 Issue

ISSUE 171 MARCH 2023 the BANKING EXECUTIVE 1 Editorial REGULATORY WAKE-UP CALL: HOW SILICON VALLEY BANK AND CREDIT SUISSE SHAKE UP THE BANKING INDUSTRY The recent collapses of Silicon Valley Bank and Credit Suisse banks have sent shockwaves throughout the global banking sector, causing concern for investors and regulators alike. These incidents serve as a wake-up call for the banking industry, highlighting the dangers of excessive risk-taking and poor management decisions, and underscoring the importance of strong regulations and oversight. These incidents have highlighted the importance of strong regulations and oversight in the banking sector. It is clear that without effective regulatory frameworks, banks may be tempted to take on excessive risk and engage in poor management practices. This can have devastating consequences for investors, and can also threaten the stability of the global financial system. Investors also need to be more vigilant in their investment decisions, by performing due diligence and avoiding investments in companies that engage in excessive risk-taking. They must also demand greater transparency from banks and financial institutions, and hold them accountable for their actions. In conclusion, the recent collapses of Silicon Valley Bank and Credit Suisse serve as a reminder that the banking sector is not immune to risk and must remain vigilant in order to ensure stability and growth. Strong regulations and oversight are essential to prevent excessive risk- taking and poor management decisions, and investors must also exercise caution and demand greater transparency from banks and financial institutions. By learning from these lessons, the global banking system can avoid similar pitfalls and continue to thrive in the years ahead. Dr. Joseph Torbey, Chairman - World Union of Arab Bankers