Business Today | March 18, 2023
A new report has found that 186 banks in the US are at risk of failure due to rising interest rates and a high proportion of uninsured deposits. The research, posted on the Social Science Research Network titled ‘Monetary Tightening and US Bank Fragility in 2023: Mark-to-Market Losses and Uninsured Depositor Runs?’ estimated the market value loss of individual banks’ assets during the Federal Reserve’s rate-increasing campaign. Assets such as Treasury notes and mortgage loans can decrease in value when new bonds have higher rates.
The study also examined the proportion of banks’ funding that comes from uninsured depositors with accounts worth over $250,000.
Don’t need not stinking research, the banking collapse is by design.