186 US banks could collapse after Silicon Valley

A new study has found that 186 banks are at risk of failure, as a result of the recent collapse of Silicon Valley Bank. The study suggests that even if only half of the depositors decide to withdraw their funds, these banks could still face the risk of collapse.

This is due to the aggressive interest rate hikes by the Federal Reserve, which have reduced the value of bank assets such as government bonds and mortgage-backed securities.

According to the economists behind the paper, the recent declines in bank asset values have made the U.S. banking system more fragile, leaving it vulnerable to uninsured depositor runs.

The study’s findings are cause for concern, and raise questions about the stability of the U.S. banking system.