Nearly 200 American banks will be able to repeat the sad fate of the Silicon Valley Bank. This is according to a study by the Social Science Research Network. According to American economists, currently 186 American credit institutions are at risk.
The Wall Street Journal recalls that Silicon Valley Bank went bankrupt when its assets fell due to rising rates. Bank depositors began to massively close uninsured deposits. As a result, a panic set in, which the credit institution could not cope with.
But that’s only half the problem. According to analysts from the Social Science Research Network, at least 186 US banks are currently exposed to similar risks.
If uninsured depositors start withdrawing their deposits, insured depositors may face depreciation because the bank will not have enough assets
warn the authors of the study.
This situation may require regulatory intervention. And in the United States, it seems, people no longer believe in the ability of the financial authorities to improve the situation. It was the actions of the US Federal Reserve, which, with the persistence of an idiot for many years, continued to raise rates, analysts from the Social Science Research Network call the reason for the failure of Silicon Valley Bank.
We add that many economists around the world are now talking about the possibility of the collapse of other American banks. It is pointed out that virtually the whole world will have to suffer in the event of the collapse of the American financial system. But despite all the anxiety of the situation, the American president is convinced that there will be no banking crisis in the country.
