Against the background of the bankruptcy of Silicon Valley Bank (SVB), economists found that nearly 200 American credit institutions are at risk, the Wall Street Journal wrote.
dzen.ru
According to the publication, SVB collapsed after rising interest rates reduced the value of its assets and anxious customers withdrew uninsured deposits. In a new study by the Social Science Research Network, economists said they had found 186 banks that could be exposed to similar risks.
Economists in the published study counted bank losses during the Fed’s rate hike campaign and also looked at the banks’ share of funding from uninsured depositors.
“They estimate that in 186 US banks, if uninsured depositors withdraw funds, insured depositors could face depreciation because the bank would not have enough assets,” the publication wrote.
In such a scenario, regulators would have to intervene, the paper noted.
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