A Silicon Valley Bank by Economists (SVB) analysis, of 186 banks may be prone to similar risks. revealed.
The interest rate hike policy of the USA, the market value of the assets of the banking system in the country. dropped $2 trillion. Alongside emerging factors was the collapse of the SVB as a result of a mix of losses, uninsured deposits and a larger loan portfolio. Analyzing these processes of the SVB and the resulting results economistsoperating in the USA He claimed that 186 banks were also at potential bankruptcy risk.
SVB Analysis Reveals 186 Risky US Banks
Economists, the recent Silicon Valley Bank (SVB) were analyzed. This analysis shows that even insured depositors can face impairment if half of uninsured depositors withdraw their funds quickly. There are 186 US banks revealed.
Commenting on the analysis economists, “Our calculations show that these banks are certainly at risk of potential bankruptcy in the absence of further government intervention or recapitalization.” said.
According to economists, the collapse of the SVB reminded of the fragility of the traditional financial system. According to economists, this vulnerability could have a negative impact on long-term assets such as monetary policies, government bonds and mortgages.
The financial experts who prepared the analysis said that the US policy of increasing interest rates SVB claims to be able to reveal many such stories.
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