Don’t worry, the events of the past week only amount to the second biggest banking crash in US history.
But while the GFC 1.0 took down the big banks, this crisis appears to be mainly claiming the scalps of smaller institutions - prompting the question "are there too many to fail?”
Just how big is the scale of stress in the US banking system?
Uncertainty reigns supreme.
The ASX saw its longest weekly losing streak since the Global Financial Crisis.
Much of the market commentary is focused on just how many more banks will fail?
AMP Chief Economist said in a note that there have been record bank borrowings at the Federal Reserve’s discount window.
Which he said highlighted “the scale of stress in the US banking system”.
Meantime, Australian banks have been quick to distance themselves from the crisis.
Treasurer Jim Chalmers has sought to quell concerns saying the initial advice from regulators is that the fallout for Australia’s broader financial system is unlikely to be significant.
And if anything, Australians may indeed benefit from the crisis, with Westpac paring back its predictions for future interest rate rises.
Westpac’s economics team now predicts the RBA will pause on rates in April, and there will be just one more rate rise for 2023, in May.
So in summary, the American banks sneeze and Aussies get interest rate relief.