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By Hugues PIROTTE, Professeur de Finance, Faculté Solvay, Université libre de Bruxelles, Co-fondateur de FinMetrics
Over the last weeks, we have experienced a situation that many had relegated to the past: massive withdrawals from banking institutions. As a consequence, between Friday 10 March and Monday 20, three midsized US banks failed (Silicon Valley Bank (SVB), Signature Bank and Silvergate Bank) and the iconic Credit Suisse bank had to be rescued through a merger operation. This triggered a wave of panic across the globe fearing for contagion, with shares of banks falling and fears for other banks starting to boil, including banks such as Deutsche Bank, which shares were down 26.6% between 8 March and 24 March. But how far is this due to bad luck,...
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