Norway Wealth Fund Says Some Banks Caught Out on Rate Surge
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The turmoil surrounding the collapse of Silicon Valley Bank showed that some banks weren’t ready for the rapid increase in interest rates, according to Norway’s sovereign wealth fund.
“Not everyone is prepared for that,” Trond Grande, Deputy CEO at Norges Bank Investment Management, said in an interview Friday. “What we saw wasn’t really a credit event in any shape or form, it was more liquidity and poor risk management,” he said.