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BEVERLY HILLS, (California): International Monetary Fund Managing Director Kristalina Georgieva said on Monday she expects more weaknesses to be exposed in the banking sector, only hours after First Republic Bank was rescued by JPMorgan Chase.

Speaking at the 2023 Milken Institute Global Conference in Beverly Hills, California, Georgieva immediately addressed the biggest topic of the day; the banking crisis that has been unnerving investors for weeks.

She said the quick transition from low to much higher interest rates played a role in uncovering weaknesses at certain banks and added that the pain may not be over.

IMF warns deeper financial turmoil would slam global growth

“It doesn’t mean that we have a free pass,” she said. “It doesn’t mean that there wouldn’t be more vulnerabilities to come.” Investors have said on the sidelines of the conference that they are worried more drama could lie ahead as investors could target other smaller vulnerable banks.

Georgieva said what was noteworthy in the latest rescue was how quickly deposits moved away from San Francisco-based First Republic and said the speed was partly due to the power of social media.

However she also praised regulators and said she expects to see “new regulatory and disclosure thinking around how we deal with this.”

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Tulukan Mairandi May 02, 2023 06:47am
Pakistan banks are weeks away from collapse
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Usman May 02, 2023 12:03pm
@Tulukan Mairandi, yes but seems they are better performing than Americans as this was third American bank collapse only in two months and not to forget Credit Suisse of Switzerland.
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Joe May 04, 2023 05:06am
Banks have been surviving due to political networking not due to sound financial decisions!
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Bilal Arshad Deo May 04, 2023 12:34pm
Banks should be taken more risk let the economy grow by taking exposure in future technologies and growth projects if bank fails really not matter if nation fails that's the problem we are stuck in saving capitalist not the nation. Every big gun got lot of protection, support of establishment and big lawyers in pockets to ensure full protocol and protection. Let the bank take more exposure
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