Three kinds of firm still vulnerable to 2023-style crisis – FSB
Hardest-hit banks suffered outflows of 20–30% of deposits each day, report finds
New analysis by the Financial Stability Board (FSB) says three kinds of financial firm are particularly exposed to the risks that caused turmoil in the banking sector in 2023.
Last year, losses triggered by rising interest rates led to rapid deposit outflows that caused several banks to fail. The FSB’s report finds that a “weak tail” of banks, as well as life insurers and real-estate investment firms, are still vulnerable to a combination of interest rate and liquidity risk.
If trouble does break
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