Why Bank Carnage in the West May Boost China’s Appeal

The past week has demonstrated (and not for the first time) one of the perils of a globalized financial system: the potential for problems to metastasize quickly, upending the outlook across major economies.

The connection between the collapse of Silicon Valley Bank, a regional lender that wasn’t even designated a global systemically important bank (GSIB), and Credit Suisse Group, very much a GSIB, are far from obvious. Yet the plunge in confidence in smaller US banks made the leap over to Zurich nevertheless.