Over 180 US banks at risk of collapse, study shows.

1 min read
Source: Fox Business
Over 180 US banks at risk of collapse, study shows.
Photo: Fox Business
TL;DR

A new study suggests that 186 American banks could fail if half of their depositors suddenly withdrew their funds, depending on certain market conditions. The study was published shortly after the collapse of Silicon Valley Bank (SVB), the worst American financial institution failure since 2008. The issue lies in the fact that the studied banks' assets are in government bonds and mortgage-backed securities, which were negatively affected by the Federal Reserve's recent interest rate hikes.

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