PanamaTimes

Thursday, Mar 12, 2026

Study finds 186 banks vulnerable to SVB-like collapse

Study finds 186 banks vulnerable to SVB-like collapse

The study created a scenario where half of 186 banks' depositors withdrew their funds

A new study says that, depending on certain market conditions, nearly 200 U.S. banks could be vulnerable to the same fate as Silicon Valley Bank (SVB).

A recent Social Science Research Network study suggests that 186 American banks could fail if half of their depositors suddenly withdrew their funds. The researchers formulated a speculative scenario in which each bank experienced a run, and concluded that the FDIC would run out of money.

The study was published shortly after the collapse of SVB, the worst American financial institution failure since 2008.

"Our calculations suggest these banks are certainly at a potential risk of a run, absent other government intervention or recapitalization," the economists wrote.

"Even if only half of uninsured depositors decide to withdraw, almost 190 banks are at a potential risk of impairment to insured depositors, with potentially $300 billion of insured deposits at risk," the study's abstract reads. "If uninsured deposit withdrawals cause even small fire sales, substantially more banks are at risk."

The issue lies in the fact that the studied banks' assets are in government bonds and mortgage backed securities, which were negatively affected by the Federal Reserve's recent interest rate hikes.

SANTA CLARA, CALIFORNIA - MARCH 10: A worker (C) tells people that the Silicon Valley Bank (SVB) headquarters is closed on March 10, 2023 in Santa Clara.


Many of SVB's assets were long-term government bonds. Despite being a sound long-term investment, they were not worth as much as when SVB originally bought them. SVB invested too heavily in longer-term mortgage securities with more than 10 years to maturity.

SVB sold those bonds at a staggering $1.8 billion loss to meet customer withdrawals. When SVB disclosed that loss, depositors panicked and withdrew their money.

People line up outside of the shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara.


"Overall, these calculations suggest that recent declines in bank asset values very significantly increased the fragility of the US banking system to uninsured depositor runs." the study's abstract concludes.

FOX Business has reached out to FDIC for comment, but has not received a statement.

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
President Trump warns countries against abandoning recent trade deals with the US
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
Cuba adopts electric tricycles for transport amid fuel shortages
Cuba's fuel crisis leads to mounting waste in Havana
Eighty-Year-Old Lottery Winner Sentenced to 16.5 Years for Drug Trafficking
UK Green Party Considering Proposal to Legalize Heroin for an Inclusive Society
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Cuba Warns It Has Only Weeks of Oil Remaining as US Pressure Tightens
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
WhatsApp Develops New Meta AI Features to Enhance User Control
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
America’s Venezuela Oil Grip Meets China’s Demand: Market Power, Legal Shockwaves, and the New Rules of Energy Leverage
There is no sovereign immunity for poisoning millions with drugs.
President Trump Says United States Will Administer Venezuela Until a Secure Leadership Transition
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
Erling Haaland’s Remarkable Run: 13 Premier League Goals in 10 Matches and Eyes on History
White House Refutes Reports That US Targeting Military Sites in Venezuela
Hurricane Melissa Strikes Cuba After Devastating Jamaica With Record Winds
U.S. Targets Maritime Narco-Routes While Border Pressure to Mexico Remains Limited
Argentina’s Markets Surge as Milei’s Party Secures Major Win
U.S. Treasury Sanctions Colombia’s President Gustavo Petro over Drug-Trafficking Allegations
‘I Am Not Done’: Kamala Harris Signals Possible 2028 White House Run
Ecuadorian President Daniel Noboa Alleges Poison Plot via Chocolate and Jam
Trump Accuses Colombia’s President of Drug-Leadership and Announces End to US Aid
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
A Dollar Coin Featuring Trump’s Portrait Expected to Be Issued Next Year
Trump Stands Firm in Shutdown Showdown and Declares War on Drug Cartels — Turning Crisis into Opportunity
FBI Strikes Deep in Maduro’s Financial Web with Bold Money-Laundering Indictments
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
New World Screwworm Creeps Within Seventy Miles of U.S. Border, Threatening Cattle Sector
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
Trump Orders Third Lethal Strike on Drug-Trafficking Vessel as U.S. Expands Maritime Counter-Narcotics Operations
US Launches New Pilot Program to Accelerate eVTOL Air Taxi Deployment
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Actor, director, environmentalist Robert Redford dies at 89
Florida Hospital Welcomes Its Largest-Ever Baby: Annan, Nearly Fourteen Pounds at Birth
Could AI Nursing Robots Help Healthcare Staffing Shortages?
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
In a highly politically motivated trial, Brazil’s Supreme Court finds former leader Bolsonaro guilty of plotting coup
×