Economists on the background of the bankruptcy of Silicon Valley Bank (SVB) found that almost 200 US credit institutions are at risk.
About it writes Wall Street Journal.
Silicon Valley Bank collapsed after rising rates drove down the value of its assets and anxious clients withdrew uninsured deposits. In a new study, economists say they have identified 186 banks that could be exposed to similar risks.
The material says that economists in a study published in the Social Science Research Network calculated the losses of banks during the Fed’s rate hike campaign, and also examined the share of bank funding from uninsured depositors.
“At 186 US banks, they estimate that in the event of withdrawals by uninsured depositors, insured depositors may face depreciation because the bank will not have enough assets,” the publication said.
In such a scenario, regulators will have to intervene, the newspaper writes.
Recall that the bursting Silicon Valley Bank is one of the key lenders for technology startups.
Shortly after its collapse, the second major bank in the US, Signature Bank, collapsed. The size of his assets at the end of last year was estimated at $110 billion.
