Regulators have flagged the moral hazard risk in the banking sector as they intervene in the SVB crisis. This means that


Key Highlights :

1. U.S. regulators may have stemmed a banking crisis by guaranteeing deposits of collapsed Silicon Valley Bank (SVB), but some experts warn that the move has encouraged bad investor behaviour.
2. Following a weekend of discussions over the future of SVB owner SVB Financial Group, banking regulators unveiled emergency funding plans for the bank.
3. Also, the Federal Reserve made it easier for banks to borrow from it in emergencies.


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