Global banking sector in turmoil as interest rates rise
The global banking sector is experiencing turmoil as interest rates rise, with concerns over banks' bond portfolios and potential unrealised losses in government bonds. The collapse of Silicon Valley Bank and Credit Suisse's forced merger with UBS have sparked market instability. Investors are bracing for more tumult in the banking sector and are worried about how the Federal Reserve's tightening will affect the economy. The forced merger of Credit Suisse and UBS is hoped to ease the strain on the global banking system and avert a full-blown crisis. The situation is being closely monitored by regulators, with South Korean regulators warning lenders to brace for the fallout from the collapse of Silicon Valley Bank. The situation is still volatile, and there is little confidence that the crisis has fully run its course.