The news: Volatility reigns in the fallout from Silicon Valley Bank’s collapse. On Monday, shares in several regional US lenders tanked amid concerns over another bank run similar to the one that toppled SVB. But on Tuesday, stocks rebounded as investor fears cooled following government intervention.
Pressure remains on regional banks: Here are four of the hardest-hit banks and why they could be at risk.
Fear and panic could lead to more bank runs: The US government hopes that its intervention will calm markets and restore faith in regional banks. Anxiety over lenders that are perceived to be in a similar position to SVB could lead to more bank runs. The most at-risk banks are midsize regionals that focus on venture-backed startups and have large uninsured deposit bases and a less-diversified clientele.
Big Six US banks are unlikely to be at risk:
The Big Six lenders may even benefit from the situation. They’ve been swamped with applications from customers aiming to move their money out of smaller banks amid fears that SVB contagion could wipe out other regional lenders.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
11 Times SquareNew York, NY 100361-800-405-0844