Almost 200 American banks are facing bankruptcy

Almost 200 American banks are facing bankruptcy after the collapse of Silicon Valley Bank.

Almost 200 American banks are facing bankruptcy after the collapse of Silicon Valley Bank.
Economists in the United States said that 186 American banks are facing bankruptcy after the collapse of Silicon Valley Bank (SVB), The Wall Street Journal newspaper writes, citing a study by the Social Science Research Network. It is noted that this may happen due to an increase in the key rate, as well as the presence of a large number of uninsured deposits. According to the publication, in the event of a mass exodus of these funds, insured deposits may suffer.
Silicon Valley Bank collapsed after rising rates reduced the value of its assets, and anxious customers withdrew uninsured deposits. In a new study, economists said they found 186 banks that may be exposed to similar risks, the publication says.
At the same time, experts did not specify what amount of funds they are talking about in case of losses in such a massive bankruptcy.
Earlier, the Financial Times newspaper wrote that the share price of banks in the United States, Europe and Japan fell by 16% in March amid the bankruptcy of Silicon Valley Bank (SVB). It is noted that, in addition to the closure of the American bank Signature Bank, one of the largest banks in Switzerland, Credit Suisse, faced difficulties. According to the publication, the market value of Western banks has lost 459 billion. Experts noted that the collapse of SVB and a number of banks is associated with an increase in the Fed's key rate, which devalued the assets of financial institutions.