Banking Crisis Looms as the World Grapples with Climate Change

As we enter the year 2023, the world seems to be racing from one crisis to another. The financial system is not immune to this, as anxiety is racing through it, and it appears we are poised on the edge of a banking crisis.

The term “multiple crisis” seems fitting to describe the current state of the world. The pandemic is still present, and we are already plunging straight into a banking crisis. This begs the question: what is going wrong?

Is it inevitable that we are headed for another banking crisis?

This could not be a crisis in the usual cyclical sense, but in a secular sense. We are headed for the mother of all financial crises, and the reason for this can be traced back to the end of the Industrial Age and the dawn of the Age of Extinction or, more accurately, “climate change.”

Our financial system is not equipped to handle the Age of Extinction. Until it is, the system will continue to be hit by intensifying crises, much like the rest of our systems, including food, water, energy, and healthcare.

There are two types of banks: retail banks and investment banks. Retail banks hold deposits and lend to households, while investment banks invest, or at least that’s the theory.