
Run-on Deposit Saves Small Banks from Collapse
By Garvit Vyas , 05 June, 2023
After the collapse of Silicon Valley Bank and Signature Bank spread, the fear that other banks might also fall increased. It resulted in a run-on deposit mostly at the smaller banks.
Although, the FED and the FDIC are stepping in quickly to contain the damage which made customers of failed Silicon Valley Bank and the Signature Bank whole and the promising additional liquidity to other banks struggling to continue with the withdrawal requests. Also, the deposit flights from the U.S. banks continued as Credit Suisse’s collapse further shake the confidence in the banking sector.
Fed says, the United States commercial banks lost $172 billion in deposits in March 2023, as the large, small and the non-U.S. banks witnessed the deposits to decline by $90, $40, and $42 billion respectively at the same time being of March 2023. The confidence in the financial system slowly getting into track as the further bank failures calmed down.U.S. Bank Failures in Each Year, Adjusted For Inflation

Latest News

Leading technology giants Amazon, Google, and Meta have teamed up with other big energy users in a historic action at the CERAWeek 2025 energy conference in Houston to promote an ambitious initiative: doubling world nuclear power capacity by 2025…

China's refining sector showed resilience and adaptability in the first months of 2025, raising crude oil throughput by 2.1 percent over the year before. According to the National Bureau of Statistics, this increase resulted in a processing volume of…

In March 2025, Elsevier launched ScienceDirect AI, a world-renowned leader in science and health information science. This state-of-the-art generative AI tool can potentially transform the industry with its revolutionary advances in research. This…

The global electric vehicle (EV) industry has reached a pivotal milestone. The average price of lithium-ion battery packs has dropped below the USD 100 per kilowatt-hour (kWh) threshold, a benchmark long considered critical for achieving price parity…

In 2025, China will focus on self-sufficiency in high-tech industries by further integrating domestically produced semiconductor chips into the country\'s electric vehicle (EV) industry. By doing so, China aims to reduce reliance on foreign…
Analyst
Latest News




