186 Banks Found to Have Similar Risks as Silicon Valley Bank
A recent study by economists identified 186 Bank s at risk. These Bank s face issues similar to that which caused the collapse of Silicon Valley Bank . SIVB collapsed earlier this week due to the Bank ’s assets being diminished by increasing interest rates. This led to concerned customers withdrawing their uninsured deposits. During the Federal Reserve’s swift rate-hike campaign, the economists evaluated individual U.S. Bank s. They assessed asset books and market value losses. Assets such as Treasury notes and mortgage loans can decrease in value. This happens when new bonds offer higher rates. The economists also analyzed the Bank s’ funding percentages. They focused on funding derived from uninsured depositors, those with accounts holding over $250,000. Their findings suggest a potential problem. If half of these uninsured depositors were to withdraw funds rapidly from any of these 186 U.S. Bank s, even insured depositors might face impairments. This is due to insufficient assets...