Banks Face Their Worst Losses Since the 2008 Crisis if Inflation Cannot Be Tamed: BIS

The banking crisis, triggered by the collapse of major U.S. lenders, is far from over, according to the Bank for International Settlements (BIS). BIS officials have called for urgent action and a change in mindset among advanced economies, emphasizing the need to address soaring inflation and high levels of public and private debt. Failure to tame inflation could result in credit losses for banks comparable to the 2008 global financial crisis, with even smaller institutions impacting overall confidence in the system. The BIS also highlighted risks in the shadow banking system and expressed concerns about unsustainable government policies and the grim outlook for government debt.