Steve Schwarzman: "the banking system is not in any type of conventional crisis"

The banking system is not in any type of conventional crisis.  We have just an interim issue with interest rates being up and we have a deposit issue caused by technology.  And these are both solvable problems for the vast number of banks. 

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This crisis was caused by people on iPhones and other devices, hearing on social media that some bank might be in trouble.  They responded with huge withdrawals in a very short period of time, collapsing the bank.

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[While rising interest rates have decreased the value of bonds held by banks, most of them] are government securities so if you wait long enough, they will be repaid.  [Loans are] in good shape [and lenders have much bigger capital buffers than 15 years ago]. 

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We’ve seen some shift from overnight deposits into time deposits, but we’ve not seen a general deposit outflow of the banks.  For now the banking sector looks rather resilient.

~ Steve Schwarzman, "Blackstone's Schwarzman Says US Banking System is 'Solvable'," WealthManagement.com, March 30, 2023