the OECD map a remake of the 2008 crisis

A few days after the bankruptcy of the American bank SVB which sparked a stock market panic in the banking sector, the OECD ruled out on Friday any risk of a “systemic crisis” comparable to that of 2008.

We are in a very different situation from 2008, estimated at a Paris press conference Alvaro Pereira, acting chief economist of the Organization for Economic Co-operation and Development (OECD). We created a stronger regulationcentral banks and regulators have learned from previous crises (…) and most banks in the world are well capitalized, he tried to reassure.

Although I know that we can assist episodes of turbulencewe do not consider the bankruptcy of SVB as a systemic risk at this time, concluded Mr. Pereira.

While there is obviously an increased risk to financial stability as long as markets are volatile, we believe risks of wider contagion are rather limitedadded OECD Secretary General Mathias Cormann.

Inflation remains the main problem

The organization also took advantage of the presentation of its new economic forecasts on Friday to bring its support the European Central Bankwhich decided on Thursday to stick to its monetary tightening strategy and raised its main rates by 0.5 percentage point despite market instability.

The main problem we still face is inflation, which has returned in recent months in Europe to levels not seen for decades, insisted Alvaro Pereira. To try to reduce it, we think it is very important that monetary policy continues in the same direction, he argued, as the US Federal Reserve meets in a few days.

The Credit Suisse spectrum

Earlier in the week, several European politicians have already tried to calm the concerns, the European Commissioner for the Economy Paolo Gentiloni having dismissed on Monday the prospect of a direct contagion to the economy of the Old Continent.

Not enough to dissipate the clouds completely, however, the Swiss bank Credit Suisse having meanwhile experienced serious difficulties and plunged the markets into turmoil. OECD officials interviewed by AFP on Friday declined to comment on the Credit Suisse case.

Credit Suisse is a particular case known for several years, said Friday morning the governor of the Banque de France Franois Villeroy de Galhau on BFM Business.

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