April 2, 2023

Why banking is a fragile business

R Balakrishnan / Stocks, Bonds & Deposits, Categories, Markets / April 2, 2023

The recent furore surrounding the failure of Silicon Valley Bank in the US has exposed that while banking is a favourite sector with stock market investors, the fragility of the banking business is far from well-understood. Banks are held up as the engines of economic growth. Whichever sector grows, the banking sector ultimately gains. Banks are also accorded a higher valuation than most sectors during bull phases. In good times, banks made up a 40% plus weight in our leading stock market indices.

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April 2, 2023

Why banking is a fragile business

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