Business | Saturday, March 18, 2023 at 7:03 AM
Approximately 200 banks may be vulnerable to the same risk that takes over the Silicon Valley Bank the value of their assets. According to a new study published at the Social Sciences Research Network, there are 186 banks across the country.They may have problems in getting. The concern is that these banks are present in financial vehicles that are sensitive to interest rates such as state bonds and mortgage -supported securities. In the case of SVB, Santa Clara, California -based institution, most of the cash in terms of losing the first investment, but the SVB has not been as valuable as the time it was when she bought them. Because interest rates have risen since then.He had to sell some of these bonds to meet them less than he paid for them, which resulted in a loss of about $ 2 billion. 186 Banks may be vulnerable to the risks sentenced to Silicon Valley Bank. Many of the banks at risk keep the cash of deposit holders in long -term assets such as bonds and mortgages. When SVB announced this loss with the plan of collection of $ 500,000 million from Wall Street, it led to fears between the venture capital and technology start-up customer base.-The classical bank run. The Federal Government promised to support all depositors, but all deposit holders, but only those who have $ 250,000 to stop a wider panic that deposit holders have started to withdraw money from other banks of the same size. Now, the study shows that if a high percentage of worried customers starts to withdraw their deposits, some of the other banks may be vulnerable to the same developments. “Our calculations show that these banks are definitely at the risk of working, other government intervention or re -capitalization risk, Ekonom said the economists. The study looked at the asset books of banks throughout the country, and found a $ 2 trillion loss of market value. Gotopnews.com
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