With the worry in the financial markets following the failure of two American banks and the repercussions for Credit Suisse, there is little possibility that our nation will experience another banking catastrophe. On Radio 1 on Saturday, Finance Minister Vincent Van Peteghem (CD&V) made this statement.
“We still have awful memories of the financial crisis of 2008, but steps were done to enhance the deposit and guarantee system, increase bank creditworthiness, and tighten buffers,” said Van Peteghem.
To explore options for the bank now that it has been drawn into the downward spiral brought on by the failure of American banks, Credit Suisse’s top executives will meet with the Swiss regulator this weekend. The Swiss central bank has already given the bank 50 billion francs in support.
extremely low risk
Van Peteghem asserts that the central bank has stated it continues to have faith in Credit Suisse. Although he is closely monitoring the situation with the National Bank and the European Central Bank, he does not anticipate any issues for the Belgian banks in the event that a systemic bank like Credit Suisse were to fail. “You can never say that there would be no impact, but today we see that the risk is quite tiny,” adds Van Peteghem. “During the financial crisis, we have seen a number of banks fail, but we must also acknowledge that actions have been done to strengthen and improve the resilience of the institutions.”
Also, it’s critical to maintain confidence and calm. According to Van Peteghem, the best approach to deal with worry is to present the facts as they are.