Why Credit Suisse, Silicon Valley Bank don't point to a financial crisis

Key takeaways
Byproduct of tightening
Tightening cycles in 1984 and 1990 led to banking issues but didn’t result in severe recessions or threaten the global financial system.
Not a solvency issue
Bank asset quality, in aggregate, is sound.1 Today’s challenges are funding and liquidity issues.
There may be more
That’s how tightening cycles tend to play out. Policymakers are ready to respond and financial system should withstand challenges.
Footnotes
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1
Source: US Federal Reserve. As represented by tier one capital ratios.
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2
Source: Bloomberg. As represented by the peak to trough decline associated with the 2008 recession in the S&P 500 Index.
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3
Source: Federal Deposit Insurance Corporation
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4
Source: Federal Deposit Insurance Corporation
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5
Source: US Federal Reserve. As represented by tier one capital ratios.
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6
Source: Bloomberg. As represented by the 5-year returns from 1985 to 1989 and 1991 to 1995 of the S&P 500 Index.