Concern over banking crisis reaches levels unseen since 2008 — Poll

Public opinion on banks appears to be waning according to an April poll, as the industry struggles to contain the collapse of several high-profile financial institutions in recent months.

a rooster survey conducted in the United States in April with at least 1,000 respondents revealed that 48% of them said they were worried about their money in the bank, with almost 20% indicating they were "very worried".

It should be noted, however, that the survey was conducted after the Silicon Valley bank collapse and Signature Bank, but before The Bank of the First Republic went bankrupt at the end of April.

Republicans, low-income adults, and those without a college degree are more concerned than their counterparts about the safety of their money at banks or other financial institutions. https://t.co/qhaQqu3mW6

—GallupNews (@GallupNews) May 7, 2023

gallup concluded that the level of concern was on par with that measured during the last bank-induced financial crisis in 2008 “when financial institutions previously believed to be 'too big to fail' collapsed”.

“The latest readings are similar to 2008. In September of that year, shortly after the collapse of Lehman Brothers, which remains the largest bankruptcy filing in US history.”

186 US banks at risk

Meanwhile, experts from the Hoover Institution's think tank postulate that if half of uninsured savers withdrew all their cash, 186 US banks would be at "potential downside risk."

These banks have total assets of $300 billion but represent less than 5% of the My dear 4,135 commercial banks insured by the FDIC (Federal Deposit Insurance Corporation) in the United States.

Furthermore, according to reportsCalifornia-based PacWest, Arizona-based Western Alliance and Memphis-based First Horizon Banks are breaking even after a stock price plunge last week.

Related: Banking crisis: What does it mean for cryptocurrencies?

one more damnation report emerged from the UK's Telegraph earlier this month, suggesting that half the banks in the US could be insolvent.

He cited research published in April by Stanford University banking expert Professor Amit Seru, who estimated that more than 2,315 US banks currently have assets that are worth less than their liabilities.

“The market value of the assets of the US banking system is $2.2 trillion less than suggested by the book value of the assets representing the held-to-maturity loan portfolios,” he said. saying.

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