Blackstone Inc.’s Steve Schwarzman expects most US banks to withstand the current industry turmoil, blaming it on the after-effects of the pandemic and technology rather than a wave of bad loans.
The billionaire chief executive officer of the New York-based alternative asset manager said mobile phone apps that have enabled people to communicate and move their money quickly, coupled with a massive increase in deposits after the global coronavirus health crisis, led to the current tumult.
“The banking system is not in any type of conventional crisis,” Schwarzman said in an interview in Tokyo on Thursday. “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.”