The banking turmoil

IAN C. BATES / NEWS  

The banking turmoil  

Fed self-critical about SVB collapse - promises improvement  

A management that failed in its management of the risks and a central bank whose supervisors did not fully understand the extent of the vulnerability. These are two of the reasons for the collapse of the bank SVB Financial in March, according to a report from the Federal Reserve.  

- After the collapse of Silicon Valley Bank, we must strengthen the Federal Reserve's supervision and regulation based on what we have learned, says Fed Governor Michael Barr, who is responsible for banking supervision.  

 

Henrik Montgomery/TT  

Swedish inflation  

Breman on the disagreement: "No rowdy atmosphere at all"  

Two of the Riksbank's five board members, Anna Breman and Martin Flodén, advocated a smaller increase of 25 points. Other members favored the 50 basis point increase that was also announced this week.  

The disagreement is completely undramatic, says Breman in Friday evening's Ekonomibyrån in SVT. 

- It is not a rowdy atmosphere at all, but we have a very good discussion internally. And the whole construction with an executive board, five people, the idea is that we should be able to think differently.

The reason Breman wanted to see the smaller increase was that she believed it gave the Riksbank more options for action in the long term.  

- But my colleague Floden and I say that we can see further interest rate increases in the future and that we also want to remain open to going back to larger interest rate increases if we get bad statistics in the autumn.