Nearly 200 American credit institutions could repeat the fate of the bankrupt Silicon Valley Bank (SVB). In this respect Wrote The Wall Street Journal cites data from the Social Science Research Network.
“Silicon Valley Bank collapsed after rising rates devalued its assets and worried customers withdrew their uninsured deposits. Economists said in a new study they identified 186 banks that could be exposed to similar risks.
Referring to an opinion published in the Social Science Research Network, the newspaper reported that if the US Federal Reserve System (Fed) withdraws money by uninsured depositors, 186 banks may suffer losses during the rate hike campaign, and insured depositors may face depreciation. because the bank will not have enough assets. In this case, the regulatory authorities will have to intervene in the situation.
At the end of last week, the press service of the Federal Deposit Insurance Corporation (FDIC) reported About the destruction of the American Silicon Valley Bank (SVB), which ranks 16th in the list of the largest credit institutions in the USA.
On the eve of Bloomberg, according to data from the regulator calculatedHe said US banks had borrowed a record $164.8 billion from the Fed in the seven days ending March 15, amid the SVB bankruptcy situation.
Last week, Fed chairman Jerome Powell declarationHe said the US would continue to raise key interest rates to fight inflation.