While more than $600 billion has been allocated directly or indirectly to support banks internationally in less than two weeks, uncertainty and outbreak fear new banking crisis widely distributed in the markets.

Since March 9, two regional US banks have collapsed, the largest US banks have offered $ 30 billion in support to save the US Bank of the First RepublicBye Credit Suisse he also needed backing, which eventually led to his acquisition by UBS.

In general, the support of the Fed with a guarantee of all deposits in Silicon Valley Bank And Signature bankcombined with the emergency loans it has provided to US banks, is over $300 billion and, according to JP Morgan, is half the support it provided during the financial crisis 15 years ago.

At the same time, according to the documents of the Credit Suisse-UBS merger, the total support for the deal from the state and from the central bank reaches $280 billion, i.e. one third of Switzerland’s GDP.

In response to a global response similar to that experienced during the outbreak of the COVID-19 pandemic, the Fed, the ECB and the central banks of Canada, England, Japan and Switzerland have announced coordinated actions to increase market liquidity.

Analysts predict continued volatility – due to a lack of confidence – and therefore pressure on the economy.

However, the opening of the market on Monday showed anything but calmness. The sharp sell-off of bank shares again caused stock markets into a deep red and investors are looking for ways to avoid risk.

The Swiss bank’s decision to completely delist Credit Suisse’s AT1 subordinated bonds, prioritizing them over a stock haircut, shocked the markets as European supervisors rushed to abandon their positions in Switzerland, leading to loss wrapping in the European banking sector. stock.

While analysts do not foresee another banking crisis coming, they do warn that difficult days of high volatility lie ahead of the markets, while industry confidence remains fragile due to past crises.

A wide-scale banking crisis is unlikely because notes Marco Troiano in “K”., head of European banks Scope Ratings. “European banks are resilient, well supervised and have a high level of capital, stable funding and liquidity,” he notes.

Concerted action by major central banks to improve access to liquidity will help stabilize markets once investors digest the Swiss deal, he said. However, Mr. Troyano expects volatility to remain high in the coming months as a result of major central bank liquidity withdrawals after a decade of free money.

Despite the huge support and in record time that was provided to the banking sector, the uncertainty is unlikely to disappear soon, Jan Vov Gerich, head of analysis at Nordea Research, notes in K. “We’ve had quite a few ‘isolated’ issues and many are wondering how isolated they really are,” he adds. “Undoubtedly, credit conditions will worsen, and this will be a headwind for the economy. However, I do not believe that we are facing a new banking crisis,” he emphasizes.