Citi CEO Fraser doesn’t see a broad-based crisis

Citi CEO Jane Fraser

Germany is an important market for the US bank, emphasizes the manager.

(Photo: Bloomberg)

Frankfurt, Denver First the Silicon Valley Bank (SVB) and the New York Signature Bank, then the First Republic Bank: since the beginning of March, three US regional banks have had to file for bankruptcy. And the industry is still under pressure. At the heart of the problem are the sharp rise in interest rates, which means that the bonds and loans on the banks’ books are worth significantly less.

Confidence in financial institutions has suffered greatly. Jane Fraser, head of the US bank Citi, nevertheless considers the banking system to be “stable”. “Many more banks are healthy and safe,” Fraser said in an interview with Handelsblatt.

America’s regional banks can look back on a turbulent week on the markets. At the beginning of the week, the stocks of institutes such as Western Alliance and Pacwest got caught up in the downward spiral, but then staged a relief rally on Friday. Nevertheless: Over the course of the year, there are still significant price losses.

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