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Bankrupcy glooms over US banks

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Bankrupcy glooms over US banks

Washington, Mar 19 (Prensa Latina) Current financial troubles worldwide raises real risk of bankrupcy for 186 US banks, the Social Science Research Network (SSRN) warned on Sunday.

The SSRN is an open-access online repository of scholarly research that share early-stage research, evolve ideas, measure results, and connect scholars around the world.

It has warned that 300 billion dollars in non-insured deposits are in danger. After the failure of Silicon Valley Bank (SVB), at least 186 other banks in this country could be exposed to similar risks, the SSRN study stresses.

Economists have analyzed how Federal Reserve (Fed) rate hikes affected bank assets and their implications for financial stability.

The survey also shows that the market value of the assets of the US banking system is two trillion dollars below their book value. The amount of such assets decreased by an average of 10 percent, with five percent of the banks suffering the most severe losses (20 percent decline).

Last Friday, Silicon Valley Bank (SVB) suffered the largest bank failure in the United States since the global financial crisis of 2008.

Two days later, regulators closed Signature Bank due to systemic risks and in order to prevent contagion in the sector.

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