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Silicon Valley Bank failed due to a perfect storm of losses, uninsured leverage, and a large loan portfolio, among other issues (SVB). When SVB&#39;s condition was compared to that of other participants, it was discovered that almost 190 banks in the United States are possibly vulnerable to a run.While the failure of SVB served as a reminder of the fragility of the traditional financial system, a recent study by economists revealed that a huge number of banks are vulnerable to uninsured deposit withdrawals. &#34;Even if only half of uninsured depositors withdraw,&#34; it said, &#34;almost 190 banks are at danger of impairment to insured depositors, with potentially $300 billion in insured deposits at risk.&#34;Central banks&#39; monetary policies can harm long-term assets such as government bonds and mortgages, resulting in bank losses. According to the report, a bank is declared insolvent if the mark-to-market value of its assets after paying uninsured depositors is insufficient to satisfy all insured deposits.The data in the graph above reflects assets based on bank call reports as of the first quarter of 2022. Banks in the upper right corner, including SVB (with $218 billion in assets), have the highest percentage of uninsured deposits to mark-to-market assets.The recent spike in interest rates, which has reduced the asset market value of the US banking system by $2 trillion, along with a substantial share of uninsured deposits at some US banks, threatens bank stability. &#34;Recent decreases in bank asset prices have greatly exacerbated the susceptibility of the US banking system to uninsured depositor runs,&#34; according to the study&#39;s findings.President Joseph Biden told taxpayers that there would be no impact as the federal government stepped in to protect SVB and Signature Bank depositors.But, one Twitter user reminded Biden that &#34;everything you do or touch costs the taxpayer!&#34;

More than 186 US Banks Well-positioned for Collapse, SVB Analysis Reveals

ItsBitcoinWorld

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