Regulators designated SVB and Signature Bank as systemic risks. But are they really?

Mar 13, 2023
The collapsed banks were granted a "systemic risk exception," which means the Federal Deposit Insurance Corp. can guarantee uninsured deposits.
Though Silicon Valley Bank had assets of $209 billion, some economists question whether its failure presented "systemic risk" to the banking system or the economy.
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Banks will pay the cost of SVB's collapse, and maybe that's "how it should be"

Mar 13, 2023
As the government moved to backstop depositors affected by the collapse of Silicon Valley Bank and Signature Bank, surviving banks will end up footing the costs, says Laurie Stewart at Sound Community Bank in Seattle.
The federal government announced it would ensure that depositors affected by Silicon Valley Bank's collapse would be made whole. "I'm really happy for them," said Laurie Stewart. "But here's the thing: we're gonna pay for it. Banks are going to pay for it."
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How Silicon Valley Bank failed

Mar 10, 2023
The swift and chaotic failure of SVB left CEOs and investors unable to access their money. Should we be worried about contagion?
People line up outside the shuttered Silicon Valley Bank headquarters Friday in Santa Clara, California. With venture capitalists' accounts dwindling and its bond assets losing value, SVB suffered.
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Silicon Valley Bank is seized by U.S. after historic failure

Mar 10, 2023
The bank's failure arrived with incredible speed, with some industry analysts on Friday suggesting it was still likely a wise investment.
The Silicon Valley Bank headquarters in Santa Clara, California, on March 10.
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The proportion of "unbanked" households is lowest since 2009, FDIC finds

Oct 26, 2022
The government agency that supervises banking institutions defines "unbanked" households as ones where no one has a checking or savings account. Here's why there are fewer of them now.
Among the reasons people are opening bank accounts is government stimulus during the pandemic.
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With child tax credit payments coming, FDIC wants more people to use banks

Jul 14, 2021
A disproportionate number of Black and Latinx Americans don’t have bank accounts. Studies show they could be losing money.
The Federal Deposit Insurance Corp. is trying to reduce the proportion of Americans who lack accounts, leaving many to pay check-cashing fees.
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FDIC says credit card balances dropped in Q1

May 27, 2021
Sure, we're putting some purchases on credit cards, but we're still not getting out the plastic for big travel expenses.
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For public good, not for profit.

FDIC campaigns to get the unbanked to open accounts

Apr 7, 2021
Over 7 million Americans don't have bank accounts. One big incentive to opening one: direct deposit of federal relief payments.
There are plenty of reasons why disadvantaged communities might avoid the banking system, but one benefit is the ability to deposit relief money.
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Why commercial lending fell last quarter despite low interest rates

Dec 2, 2020
The report found that bank lending volume fell in the most recent quarter, driven by decreases in commercial and industrial lending.
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U.S. households had better bank access in 2019, FDIC says. And then the pandemic happened.

A higher unemployment rate and economic turmoil means the number of unbanked households could rise again.
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