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“The U.S. bank run crisis is a test bed for financial system stability in each country”

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[2023 동아국제금융포럼]

Lecture by Professor Diamond of the Nobel Prize in Economics
Open on the 31st… An introduction to the Apple Pay strategy

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“The US Silicon Valley Bank (SVB) bankruptcy has shown that financial stability is a major issue holding back the global economy. Korea’s financial leaders should focus on promoting the resilience of the financial system.”

Professor Douglas Diamond of the University of Chicago Business School, who will be the keynote speaker at the ‘2023 Dong-A International Finance Forum’ held on the 31st, emphasized this through a lecture manuscript previously released on the 25th. Professor Diamond, who won the Nobel Prize in Economics last year, is a world-renowned scholar who identified the mechanism of a ‘bank run’ (large-scale deposit withdrawal) that occurs when fear produces fear.

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He warned that although SVB failed to manage risks caused by interest rate hikes amid low interest rates, trust in other banks could be shaken at any time if panic spreads. It is said that countries around the world are put to the test whether they can maintain the stability of the financial system well amid high interest rates.

Brett King Moben (Internet Bank) founder, author of ‘Bank 4.0’, lectures on the digital expansion of the financial industry and the artificial intelligence (AI) revolution. He explains the importance of the ability to digitally scale their platforms, analyzing how Brazilian banks Nubank and Apple Pay are differentiating themselves from traditional financial institutions. He also emphasizes that AI will be the future of financial services, saying that most of the work in the financial sector will be automated in the next 10 to 15 years. King, a world-class best-selling author and futurist, advised fintech policy during the US administration of Barack Obama.

At 9:00 am on the 31st, at the Crystal Ballroom on the 2nd floor of Lotte Hotel in Jung-gu, Seoul, the event was held under the theme of ‘A new role and solution for finance in the era of high-speed bank bankruptcy.’ also goes to You can register to attend at the Dong-A Ilbo Forum and Fair website (www.dongainsight.com). 02-361-1521

US inflation shock

Source: Donga

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