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a Comments from Alberto Matellan on the US banking sector and concerns that further US banks could go under, threatening the broader US economy. Matellan is chief economist at MAPFRE Inversion, part of MAPFRE, the largest insurance group in Spain and Latin America. He also comments on commodities and equities.
The banking sector has experienced another weekend of tensions, with the collapse of First Republic. The bank released its first quarter results, which revealed that its customers had withdrawn $102 billion worth of deposits.
This would be the fourth bank to fail, following the collapse of Silicon Valley Bank (SVB), Silvergate and Signature. However, although several banks have already been affected, these problems are not expected to spread to the US economy, much less to Europe.
"There could be more problems, but always focused on the same type of bank: US and medium or small-sized," said Alberto Matellan, who added that the impact is psychological. "There are a series of problems that affect them and they are still there, but they can hardly extend to the US economy, let alone the European economy."
Nor does Matellan think that the persistence of these problems in the banking sector will affect the central banks' discourse, given that the latter's main reference is the macroeconomic data, which for the moment continues to support the stance expected by the market: a rise followed by a message of pause.
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