{"id":1310,"date":"2023-03-18T07:40:24","date_gmt":"2023-03-18T02:10:24","guid":{"rendered":"https:\/\/news.cetoex.com\/?p=1310"},"modified":"2023-03-18T07:40:25","modified_gmt":"2023-03-18T02:10:25","slug":"186-banks-found-to-have-similar-risks-as-silicon-valley-bank","status":"publish","type":"post","link":"https:\/\/news.cetoex.com\/186-banks-found-to-have-similar-risks-as-silicon-valley-bank\/","title":{"rendered":"186 Banks Found to Have Similar Risks as Silicon Valley Bank"},"content":{"rendered":"\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/watcher.guru\/news\/wp-content\/uploads\/2023\/03\/AdobeStock_74269462-3000X2000.jpg.webp\" alt=\"Image of generic bank\" width=\"653\" height=\"435\"\/><\/figure>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Cetoex News &#8211; <\/strong> A recent study\u00a0by economists identified 186 banks at risk. These banks face issues similar to that which caused the\u00a0collapse of Silicon Valley Bank. SIVB collapsed earlier this week due to the bank\u2019s assets being diminished by increasing interest rates. This led to concerned customers withdrawing their uninsured deposits.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">During the Federal Reserve\u2019s swift rate-hike campaign, the economists evaluated individual U.S. banks. They assessed asset books and market value losses. Assets such as Treasury notes and mortgage loans can decrease in value. This happens when new bonds offer higher rates. The economists also analyzed the banks\u2019 funding percentages. They focused on funding derived from uninsured depositors, those with accounts holding over $250,000.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Their findings suggest a potential problem. If half of these uninsured depositors were to withdraw funds rapidly from any of these 186 U.S. banks, even insured depositors might face impairments. This is due to insufficient assets available for all depositors. In such cases, intervention from the FDIC could become necessary.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">It is crucial to note a significant limitation in this research. The study does not consider hedging strategies. These strategies may safeguard numerous banks against rising interest rates.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">In their paper, the economists stated: \u201cOur calculations suggest these banks are certainly at a potential risk of a run, absent other government intervention or recapitalization.\u201d<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>NEWS BY &#8211; CETOEX NEWS<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cetoex News &#8211; A recent study\u00a0by economists identified 186 banks at risk. These banks face issues similar to that which caused the\u00a0collapse of Silicon Valley Bank. SIVB collapsed earlier this&hellip; <\/p>\n","protected":false},"author":1,"featured_media":1311,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[20],"tags":[558,41,44,279,565,535,564],"class_list":["post-1310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-bank-collapses","tag-cetoex","tag-cetoex-news","tag-recession","tag-risk-on-186-bank","tag-signature-bank","tag-valley-bank"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/news.cetoex.com\/wp-content\/uploads\/2023\/03\/AdobeStock_74269462-3000X2000.jpg.webp","_links":{"self":[{"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/posts\/1310"}],"collection":[{"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/comments?post=1310"}],"version-history":[{"count":1,"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/posts\/1310\/revisions"}],"predecessor-version":[{"id":1312,"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/posts\/1310\/revisions\/1312"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/media\/1311"}],"wp:attachment":[{"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/media?parent=1310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/categories?post=1310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/tags?post=1310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}