The 2023 Banking Crisis

Financial authorities worldwide are concerned about a potential global banking crisis. Two banks in America have already failed in short succession (one is noted as the third-largest bank failure in U.S. history), then a European bank was subject to an emergency takeover. Many experts are suggesting that these events are likely the beginning, not the end, of a global banking crisis. Australia and New Zealand Banking Group’s Chief Executive, Shayne Elliott, has noted what many others worldwide are thinking. The semi-recent bank failures were symptoms of a global struggle with inflation, which may or may not trigger a financial crisis as big as the last one in 2008. In China, regional banks are also at significant risk. Officials are concerned about a ripple impact from the recent US bank failures. Uncover more about this potential banking crisis and how Lionbridge’s legal translation services can assist with upcoming challenges in the financial industry.

Global Banking Crisis or Not, Consequences Are Coming

Many countries are responding to these events in the banking industry with a call for swift punishments and more stringent regulation. An article in The Straits Times noted that Grace Wu, Senior Director and Head of China Bank Ratings at Fitch Ratings, says, “There’s certainly example and evidence of more regulatory intervention by mainland authorities than what we may see in other parts of the world.” This regulation will only increase in 2023. Sun Tianqi, Director of the People’s Bank of China’s Financial Stability Bureau, noted in January 2023 that institutions rated (and close to rated) as “high risk” will be watched closely.

Similarly, in Australia, experts noted that banking regulations quickly intensified supervision of local banks in response to the bank failures. In an article in the Financial Times, the UK is portrayed similarly. David Postings, Chief Executive of Bank Trade Association UK Finance, said banking and finance regulators will now have “more confidence in terms of the discussions” with the government. Other experts believe regulators will be taking the 2023 banking failures as cues to protect and increase regulation in the industry. 

Of course, in the U.S., the site of two 2023 bank failures, officials are planning to tighten regulations dramatically, and punitive actions have been taken. Jerome H. Powell, Federal Reserve Chair, and Treasury Secretary Janet L. Yellen are working with lawmakers, investors, and the financial industry to prevent further chaos and consequences. Powell has publicly noted that Federal supervisors have contributed to the failure and that “clearly we do need to strengthen supervision and regulation.” He said, “There’s 100 percent certainty that there will be outside investigations.” A securities suit was swiftly brought against one bank, as well as a separate securities class action lawsuit. More investigations and suits will surely come for banks and individuals in senior leadership roles. Notably, individuals can (and surely will) be held personally accountable for failing to comply with various financial industry regulations and laws. 

Legal Translation Services and 2023’s New Financial Landscape

Lawyers and their financial industry clients are more likely to face intensified scrutiny, including investigations and even legal action, in 2023. With the global nature of this potential banking crisis, the pressure may be coming from many directions – and many languages. Lionbridge offers a deep network of legal translators who are experts not just in legal translation, but also financial. They understand the complex intersection of the financial industry and the law. We can assist with legal translation required for:

• Securities Litigation
• Multilingual e-Discovery
• SEC enforcement and investigations
• Country-specific banking regulatory processes
• Investor and shareholder communications
• Financial statements and annual reports
• And more

Our technology ensures airtight security when handling your sensitive legal translations. We understand that some investigations, regulatory procedures, or litigation can require a high volume of documentation. Lionbridge has the workflows, systems, and experience to meet your needs quickly and with trustworthy, pristine accuracy – no matter how much must be translated.  

Get in touch 

Are you prepared to assist your clients with new banking and securities regulations and litigation? Will your team need translation services for legal documents or legal interpretation services to handle investigations, paperwork, customer communications, and more? Lionbridge’s legal services team has decades of experience and cutting-edge technology to support you and your clients. Reach out to us today.