The boss of Australia and New Zealand Banking Group (ASX:ANZ) has warned that recent troubles in the global finance industry could still result in another financial crisis.
“It's a crisis for some obviously, but is it a financial crisis, who knows? Does it have the potential to be one? Yes, it does have the potential to be one," said the bank's chief executive officer, Shayne Elliott.
Economies across the world have felt the pressure in the last month following the failings of Silicon Valley Bank, Signature Bank and Credit Suisse.
Markets like the FTSE 100, down close to 6% in the last month, have slumped on the back of these collapses with fears of contagion arising.
The Australia-based bank’s chief claimed that while the risk of a financial crisis was there it was too early to say whether it would result in another global crash like the one in 2008.
"This is a different issue. This is really to do with the global war on inflation and how central banks are raising rates very quickly in order to combat that, and that has casualties,” Elliot added.
He added that despite Credit Suisse and SVB being saved and the market appearing to stabilise there is still a chance trouble could “roll through over a long period of time”.
In Australia, it was revealed that mortgage customers at the nation’s second-largest bank, National Australia Bank, were already showing signs of strain due to increasing interest rates but so far there was no spikes in the number of defaults.