You are currently viewing More than 186 US banks well-positioned for collapse, SVB analysis reveals

News analysis by economists showed that a large number of banks are at risk from uninsured deposit withdrawals. It read:

“Even if only half of uninsured depositors decide to withdraw, almost 190 banks are at a potential risk of impairment to insured depositors, with potentially $300 billion of insured deposits at risk.”

Monetary policies penned down by central banks can hurt long-term assets such as government bonds and mortgages, creating losses for banks. The report explains that a bank is considered insolvent if the mark-to-market value of its assets — once uninsured depositors are paid — is insufficient to repay all insured deposits.

Largest insolvent institutions if all uninsured depositors run. Source:

The data in the above graph represents the assets based on bank call reports as of Q1, 2022. Banks in the top right corner, alongside SVB (with assets of $218 billion), have the most severe asset losses and the largest percentage

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