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Banking Industry health after Silicon Valley Bank collapse: Difference between revisions
Banking Industry health after Silicon Valley Bank collapse (view source)
Revision as of 19:55, 16 March 2023
, 16 March 2023→Mark to Market Losses
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SVB does not stand out as much in the distribution of marked to market losses. About 11 percent of banks suffered worse marked to market losses on their portfolio (Figure 2). In other words, if SVB failed because of losses alone, more than 500 other banks should also have failed. | SVB does not stand out as much in the distribution of marked to market losses. About 11 percent of banks suffered worse marked to market losses on their portfolio (Figure 2). In other words, if SVB failed because of losses alone, more than 500 other banks should also have failed. | ||
Out of the 10 largest insolvent banks ( A bank is considered insolvent if the mark-to-market value of its assets – after paying all uninsured depositors -- is insufficient to repay all insured deposits), 1 has assets above $1 Trillion, 3 have assets above $200 Billion (but less than $1 Trillion), 3 have assets above $100 Billion (but less than $200 Billion) and the remaining 3 have assets greater than $50 Billion (but less than $100 Billion). | |||
=== The Role of Uninsured Leverage === | === The Role of Uninsured Leverage === | ||