The Vulnerability of Banks in the Current Economic Climate.

A study by economists at Stanford, University of Southern California, Columbia and Northwestern found that hundreds of US banks would be at risk of failing if they were hit by runs similar to the one that recently brought down Silicon Valley Bank. The study found that because of rising interest rates hurting the value of certain assets such as bonds, US banks hold $2tn less in assets than they appear to have on paper. As a result, some banks would not survive a scenario in which many customers withdrew some or all of their uninsured deposits. The study could add more fuel to calls from midsize banks for the FDIC to insure all deposits, regardless of size, for the next two years.