An Interview on Banking Crisis with Paolo Pasquariello

In 2023, three US banks including the Silicon Valley Bank (SVB), the 16th-largest lender in America, with about $200bn in assets, failed. Adding that the crisis Credit Suisse went through which led to its merger with UBS, many feared a financial crisis like the one in 2008. Regulators and central banks immediately acted on those failures, and so far, what was feared did not come true. However, many questions have to be answered about the recent banking crisis. In our interview, Paolo Pasquariello, Professor of Finance at the University of Michigan, answers three most critical questions on the 2023 banking crisis.