USA: The threats facing some banks in the United States and Europe have the "potential" to spark a global financial crisis, according to Shayne Elliott, CEO of Australia and New Zealand Banking Group (ANZ).

Governments all over the world are worried about the fallout, which has already shook investor confidence in certain segments of the banking industry.

Elliott believes it is too soon to predict "another GFC global financial crisis" like the one that sent the world economy into recession in 2008, but the challenges facing the US and European banking sectors could have a global impact.

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"We shouldn't be surprised when things like this happen; it's obviously a crisis for some, but is it a financial crisis? Who knows. Does it have the potential to be one? Yes, it does have the potential," Elliott said.

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Economists regard Australia's banking sector as resilient to global volatility, owing to its banks' strong capitalization and liquidity. Simultaneously, following the failure of several US institutions and an emergency takeover of Credit Swiss, the country's regulator has tightened control and monitoring of domestic lenders.

Meanwhile, the CEO of ANZ has warned Western financial institutions not to get their hopes up for a quick recovery, saying that "it's clearly not over."

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"I don't think you can sit here and say, "Well, that's all done, Silicon Valley Bank and Credit Suisse, and life will return to normal." These things tend to pass over a long period of time "He came to a conclusion.