2024-06-28 08:00:00 ET
Summary
- FDIC has published data outlining outflows from larger banks.
- FDIC also noted that these banks may continue to experience heightened liquidity pressure.
- You have to engage in due diligence regarding the banks that house your hard-earned money to make sure you're not caught during a banking crisis.
We have written quite extensively over the last several years as to why it's a huge misunderstanding to believe that the largest U.S. banks will be safer than smaller banks in a systemic crisis scenario. Last week, we published an article in which we discussed that the largest banks (assets > $250B) posted the sharpest increase in the CRE delinquency ratio, according to the FDIC. The FDIC also reported that larger U.S. banks (assets > $100B) have significantly underperformed the rest of the banking sector in terms of deposit dynamics. Larger banks posted a 6.8% outflow, while community banks showed a 1% increase....
Read the full article on Seeking Alpha
For further details see:
Larger Banks Are Facing Liquidity Issues