Xuan Zhang Ning, deputy governor of the People's Bank of China (PBOC), said the bank believes the collapse of Silicon Valley Bank (SVB) shows that rapid shifts in monetary policy in advanced economies have serious implications for financial stability.

US President Joe Biden said yesterday that the banking crisis that followed the recent collapse of Silicon Valley and Signature banks is receding.

Biden has sought to reassure investors and depositors that the global banking system is safe, after financial stocks have lost billions of dollars in value since the collapse of the two medium-sized U.S. banks last week. Earlier this week, Biden vowed to his citizens that their deposits were safe.

When asked if the banking crisis had subsided, Biden told reporters: "Yes."

Financial stocks have lost billions of dollars in value since the crash last week.

California regulators shut down Silicon Valley about a week ago and assigned custody of the bank to the Federal Deposit Insurance Corporation. It was the biggest collapse since the 2008 financial crisis.

SVB Financial Group, the bank's parent company, said on Friday it had filed for restructuring under Chapter 11 of the Bankruptcy Protection Law.

Major U.S. banks pumped billions of dollars into First Republic Bank the day before the bailout of the medium-sized bank ravaged by the Silicon Valley and Signature collapses.

Biden again called on Congress to act toward tougher sanctions on top bank executives for mismanagement and excessive risk-taking.

"When banks fail because of mismanagement and excessive risk, it should be easy for regulators to get compensation from executives, impose civil penalties on them and prevent them from working in the banking sector again," Biden said.

Talks to acquire Credit Suisse

Meanwhile, the Financial Times reported on Friday that banking giant UBS Group is in talks to acquire Credit Suisse in whole or in part, and the boards of Switzerland's two largest banks are expected to meet separately this weekend.

The report quoted informed sources as saying that the Swiss National Bank (SNB) and the country's financial markets supervisory authority are organizing talks in a bid to restore confidence in the country's banking sector.

He said Swiss regulators told their counterparts in the United States and Britain on Friday evening that the merger of the two banks was "Plan A" for them to restore confidence in Credit Suisse.

The report said the SNB's focus was on agreeing on a straightforward solution before markets opened on Monday, adding that there was no guarantee a deal would be reached.

Bloomberg reported Thursday that UBS Group and Credit Suisse oppose forced mergers, with the former preferring to focus on a special strategy that focuses on wealth management and is reluctant to take risks related to the smaller competitor.

Credit Suisse, the largest bank, is the victim of market turmoil following the collapse of the two U.S. banks (Silicon Valley and Signature in New York), forcing the Swiss bank to borrow up to $54 billion from the central bank to shore up liquidity.

What about Goldman Sachs?

U.S. Representative Adam Schiff's office said Friday that a group of Democratic lawmakers had sent a letter to regulators and the Justice Department asking for an investigation into Goldman Sachs' role in the Silicon Valley Bank collapse.

Schiff and 19 California congressmen addressed the letter to Attorney General Merrick Garland, SEC Chairman Gary Gensler and Federal Deposit Insurance Corporation Chairman Martin Groenberg.

"We wish to raise concerns about Goldman Sachs' role in advising Silicon Valley Bank and in purchasing its bond portfolio," the letter said.

The lawmakers said in the letter that Silicon Valley Bank revealed Goldman Sachs' role as the acquirer of its bond portfolio on Tuesday, March 14, the last day of a four-day window allowed by the SEC for such disclosures.

"Given that Goldman Sachs would have benefited from the Silicon Valley Bank collapse, we strongly urge you to analyze Goldman Sachs' role as an advisor to this bank," the letter said.