186 banks have the same risks as Silicon Valley Bank 😬

☝🏻 Economists evaluated the portfolios of assets and losses in market value of US banks, as well as the percentages of bank financing.

If half of these uninsured depositors quickly withdraw their funds from any of these 186 US banks, even insured depositors may face devaluation. This is due to insufficient assets available for all depositors. In such cases, FDIC intervention may be required.

πŸ—£οΈ "Calculations show that these banks are certainly susceptible to potential run risk absent other government intervention or recapitalization."

Reply to this note

Please Login to reply.

Discussion

No replies yet.