Skip to content
Sign In Subscribe
The Economist — Economy — Banking industry — Banking — Economics — Investment

How deep is the rot in America’s banking industry?

Silicon Valley Bank's collapse raises concerns about the fragility of the US banking system as the rise in interest rates exposes unrealized mark-to-market losses in banks' portfolios.

1 min read
  • Silicon Valley Bank's collapse raises concerns about the fragility of the US banking system.
  • The rise in interest rates has exposed unrealized mark-to-market losses in banks' portfolios.
  • Banks with flighty deposits are more vulnerable to these losses than those with sticky, low-cost deposits.
  • The Federal Reserve's intervention with the Bank Term Funding Programme is a temporary solution.
  • Smaller banks with uninsured deposits will need to raise more capital soon.
How deep is the rot in America’s banking industry?
Silicon Valley Bank may be the start of something grimmer | Finance & economics
The Economist

More in Economy

More from The Economist

Latest