Banks face their worst losses since the 2008 crisis if inflation cannot be tamed

The Bank of International Settlements was unusually frank in its grim assessment of global financial risks. (Credit: David Paul Morris—Bloomberg/Getty Images)

The banking crisis sparked by the collapse of three major U.S. lenders in the spring may be out of the headlines, but it’s not over. 

The normally staid economists at the Bank for International Settlements, a type of brain trust for the world’s fiat-based monetary system, is not a group prone to employing alarmist language.