We share this document from NYU Stern Business School.
The essay discusses the banking stress that occurred in 2023, its underlying causes, provides insights into the consequences of the banking stress and offers suggestions for preventing similar situations in the future.
Some banks faced trouble due to a combination of large capital shortages and a significant share of uninsured deposits, leading to potential losses for uninsured depositors and a system-wide run risk. The macroeconomic causes, including fiscal and monetary policies after the pandemic, contributed to increased risk-taking by banks. The failure of certain banks highlights the need for regulatory reforms, including strengthening supervision, revising deposit insurance, and enhancing banks’ capacity to absorb losses.
In line with its mission to promote the development of financial practices guided by the highest ethical and quality standards, CFA Society Uruguay organized together with Vanguard the event “Staying the course in times of uncertainty”, presented by Ignacio Saralegui, Senior Investment Strategist from Vanguard Latin America, who emphasized the importance of maintaining a long-term investment strategy and avoiding making impulsive decisions during times of uncertainty in the financial market.
On March 29th we held the event “Are we facing a new international financial crisis?” organized together with the National Academy of Economics where we had the valuable presentations of Fernando Barrán, Julio de Brun and Arturo Porzecanski.
CFA Society New York