Mar 18, 2023
190 Banks Risk Collapse Amid Uninsured Depositor Runs
The recent collapse of Silicon Valley Bank (SVB) has caused a ripple effect throughout the United States banking system, and an analysis by economists revealed that nearly 190 banks are at risk of a run if only half of their uninsured depositors decide to withdraw. The news has sparked a conversation about the fragility of the traditional financial system and the potential for a devastating collapse if certain monetary policies are not put in place.
The data in the graph above represents the assets based on bank call reports as of Q1, 2022. Banks in the top right corner, including SVB (with assets of $218 billion), have the most severe asset losses and the largest runnable uninsured deposits to mark-to-market assets.
The recent rise in interest rates, which brought down the U.S. banking system’s market value of assets by $2 trillion, combined with a large share of uninsured deposits at some U.S. banks, threatens their stability.
“Recent declines in bank asset values significantly increased the fragility of the US banking system to uninsured depositors runs,” the study concluded.
President Joe Biden has assured the public that their deposits will be safe and there will be no cost to the taxpayer. However, many people have taken to Twitter to express their concern that “everything you do or touch costs the taxpayer!”
The situation has left many people wondering how to protect their assets, and many have turned to the web3 space for answers. NFTs are becoming increasingly popular as a way to protect and store digital assets, and NFT marketing is becoming an essential part of promoting and selling NFTs.
NFT marketing agencies, like web3 agencies, are becoming increasingly popular among those looking to sell NFTs. These agencies specialize in using social media platforms, such as Twitter, to promote NFTs and increase their visibility. They also provide services such as content creation, SEO, and analytics to help NFT sellers maximize their profits.
The recent collapse of SVB serves as a reminder of the fragility of the traditional financial system, and the need for more secure and innovative solutions. NFTs, along with NFT marketing, provide a safe and secure way to store and promote digital assets, and are becoming increasingly popular among those looking to protect their assets in a volatile economy.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
