The Real Cause of Banking Crises and What it Means for Your Investments.

Fears of a banking crisis were overblown as contagion isn't the risk now, potential bad regulation is. Since Silicon Valley Bank's failure, the S&P 500 is up 6.5%, and overall bank deposits are down -2.5%. The Fed's Q1 Senior Loan Officer Opinion Survey showed slightly tighter lending standards and lower demand. The overall system is near its healthiest in 10, 30 or 50 years based on loan-to-deposit ratios and cash relative to total assets. The article argues that regulators should not overreact and that doing nothing is best.