Opinion: The end of the ‘everything bubble’ has finally hit the banking system. Credit Suisse and SVB might be just the first of many shocks.

The immediate cause is the rapid increase in official interest rates in the U.S. and other major global economies. “ Higher rates and losses on securities have significantly weakened the global banking system. The fact is that higher rates and losses on securities have significantly weakened the global banking system. Higher rates will affect interest sensitive sectors such as real estate, non-essential consumer industries, and highly leveraged companies. High volatility across equity, currencies and interest rates will create higher margin requirements, triggering cash needs.