INTERVIEW ON THE PRICE OF BUSINESS SHOW, MEDIA PARTNER OF THIS SITE.
Recently Kevin Price, Host of the nationally syndicated Price of Business Show, interviewed Dr. Lucjan T. Orlowski.
On a recent Price of Business show, host Kevin Price interviewed Dr. Lucjan T. Orlowski of Sacred Heart University.
The ongoing monetary tightening results in substantial interest rate, credit and liquidity risks for financial institutions. The banks need to adjust their asset, liability and risk management to the new environment of rising interest rates. Several large banks, including SVB, Signature B., Ally Financial, KeyCorp., Fifth Third Bank Corp. have faced excessive exposure to unrealized losses on fixed income securities (bonds) and insufficient capital to cover them. These banks have become vulnerable to deposit runs. Further runs on deposits, particularly at banks whose balance sheets are heavy on securities and light on loans, can be unfortunately expected.
The Federal Reserve may be well advised to pause hiking interest rates and take time to ascertain the impact lag of the recent rate hikes on inflation. The Fed also needs to assess the impact of higher rates on the mounting risks in the banking sector.
The regulators should adjust the banking supervision framework to the environment of rising interest rates.
Most of the US banks are financially sound, well managed and prepared to face increasing risks associated with the monetary tightening. American depositors should not worry about safety of their deposits.
For more information: https://www.sacredheart.edu/phonebook/lucjan-orlowski.php
Short bio:
According to a statement, “Lucjan T. Orlowski is a Professor of Economics and Finance and a Director of the Doctor of Business Administration in Finance Program at Sacred Heart University, USA. His research interests include monetary economics, financial markets and institutions, and financial stability. He has authored numerous books, chapters in edited volumes and articles in scholarly journals. He has been a visiting professor and research fellow at many prominent international institutions and universities, including University of Warsaw, University of Bonn, DIW Berlin, Halle Institute for Economic Research, University of Rome III, and Shanghai University of Finance and Economics. He was a Research Fellow at the European Commission Economic and Finance Committee. He is an Associate Fellow at Yale University Saybrook College and a member of Advisory Board of Center for Economic and Social Research in Warsaw. He has been an adviser to governments and financial institutions, including the Polish Ministry of Finance and the National Bank of Poland. He has worked with the European Commission Economic and Finance Committee on the post-crisis policy responses to extreme risks in financial markets. He has collaborated with Chicago Mercantile Exchange Group on analyzing the volatility of financial futures and its impact on real economy. He is a Doctor Honoris Causa recipient from Wrocław University of Economics.”
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LISTEN TO THE INTERVIEW IN ITS ENTIRETY HERE:
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