Nearly 200 more banks may be vulnerable to the same type of risk that took down Silicon Valley Bank: The value of the assets they hold.
There are 186 banks across the country that could fail if half of their depositors quickly withdraw their funds,on the Social Science Research Network found. Even insured depositors — those with $250,000 or less in the bank — could have problems getting their cash if these institutions face the sort of run that Silicon Valley saw a week ago.
In the case of SVB, the Santa Clara, California-based institution parked much of its cash in long-term government bonds, which are ultra-safe in terms of losing the initial investment, but were not worth as much as when SVB bought them, because interest rates have since gone higher. The bank had to sell off some of those bonds to meet customer demands for withdrawals at less than it paid for them, resulting in a nearly $2 billion loss.
Now, the study shows that a slew of those other banks could be vulnerable to the same developments if a high percentage of worried customers start trying to withdraw their deposits.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Silicon Valley Bank’s parent company files for bankruptcy protectionSVB Securities and SVB Capital were not included in the filing by SVB Financial Group.
Read more »
SVB collapse: SVB Financial Group files for Chapter 11 bankruptcySVB Financial Group announced it was filing for Chapter 11 bankruptcy to reorganize under court supervision. SVB Securities and SVB Capital's funds and general partner entities will not be included in the Chapter 11 bankruptcy.
Read more »
SVB Financial Group, parent of Silicon Valley Bank, files for bankruptcy protectionSVB Financial Group, along with its CEO and its chief financial officer, were targeted this week in a class action lawsuit that claims the company didn’t disclose the risks that future interest rate increases would have on its business.
Read more »
SVB files for bankruptcy, a week after Silicon Valley Bank's closureSVB Financial files for bankruptcy, a week after Silicon Valley Bank's closure by regulators
Read more »
SVB Financial Group, parent of Silicon Valley Bank, files for bankruptcy protectionSVB Financial Group, along with its CEO and its chief financial officer, were targeted this week in a class action lawsuit that claims the company didn’t disclose the risks that future interest rate increases would have on its business.
Read more »
SVB Financial, former parent of Silicon Valley Bank, files for bankruptcyThe bankruptcy comes days after its bank was shut down and taken over by regulators amid a solvency crisis.
Read more »