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What decoupling? Banking crisis shows global economy still tightly knit
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The collapse of mid-sized US lender Silicon Valley Bank rattled global banks and stirred contagion fears.
PHOTO: REUTERS
SINGAPORE - The speed at which the failure of a small bank in the United States turned into a global market sell-off shows the extent to which the global economy is still bound by strong financial links, making it a bit premature to declare the end of globalisation.
Shock waves from the collapse of Silicon Valley Bank in California spread to the other side of the Atlantic to hit Swiss giant Credit Suisse last week, sparking fears of another global financial crisis.
