The banking sector is not yet out of the woods, with reinflation a risk if banks fail to sufficiently predict rate moves, Moody's managing director Ana Arsov said at Reuters Next on Thursday. The U.S. banking sector was in turmoil in the spring as Silicon Valley Bank abruptly collapsed after grappling with large amounts of unrealized losses spurred by rapidly rising interest rates. Depositors fled SVB within days after it appeared the firm was in trouble, precipitating its abrupt closure.