Are any more banks at risk of failing?
There is a systemic risk of large-scale bank failures in the U.S. in 2024 due to charge-offs and write-downs emanating from the commercial real estate sector. Bank regulators have been vocal about their concerns that the too-big-too-fail banks would have sufficient capital to cover losses and a recession.
Recently, a report posted on the Social Science Research Network found that 186 banks in the United States are at risk of failure or collapse due to rising interest rates and a high proportion of uninsured deposits.
| # | Bank | TCRE to Equity |
|---|---|---|
| 1 | Dime Community Bank | 656.80% |
| 2 | First Foundation Bank | 598.20% |
| 3 | Provident Bank | 546.30% |
| 4 | Valley National Bank | 471.60% |
2024 in Brief
There are no bank failures in 2024. See detailed descriptions below. For more bank failure information on a specific year, select a date from the drop down menu to the right or select a month within the graph.
- Republic First Bancorp. , said earlier this week its auditor had found “material weaknesses” in its controls at the end of 2022, including for key credit measures. ...
- SPDR S&P Regional Banking ETF. each fell more than 1%. ...
- BOK Financial. . ...
- First Republic Bank. .
San Francisco-based First Republic Bank goes down as the second-largest failure in U.S. history. Santa Clara, California-based Silicon Valley Bank follows at number three on the all-time list and New York City-based Signature Bank is the fourth-largest bank to fail.
Your money is safe at Capital One
Capital One, N.A., is a member of the Federal Deposit Insurance Corporation (FDIC), an independent federal agency. The FDIC insures balances up to $250,000 held in various types of consumer and business deposit accounts.
| Bank | Forbes Advisor Rating | Products |
|---|---|---|
| Chase Bank | 5.0 | Checking, Savings, CDs |
| Bank of America | 4.2 | Checking, Savings, CDs |
| Wells Fargo Bank | 4.0 | Savings, checking, money market accounts, CDs |
| Citi® | 4.0 | Checking, savings, CDs |
The top three Indian lenders — State Bank of India, ICICI Bank, and HDFC Bank — remained Domestic Systemically Important Banks (D-SIBs) for the banking regulator as the Reserve Bank of India (RBI) listed out lenders that were too big to fail in 2023.
Based on the analysis of Bank of America's financial health, risk profile, and regulatory compliance, we can conclude that the bank is relatively safe from any trouble or collapse.
Will banks become obsolete?
It remains unclear whether traditional banking will become extinct soon; however, what is certain is that its role will continue to evolve if it is going to survive in this ever-changing landscape of finance.
"In future, probably banking may cease to be a separate service. Instead, banking would be embedded in all the products and services which consumers are expected to avail. Embedded finance is the integration of financial services or tools within the products or services of a non-financial organisation.
| Years | Bank Failures | Total Assets (Millions) |
|---|---|---|
| 2024 | 0 | $0 |
| 2023 | 5 | $548,705.0 |
| 2022 | 0 | $0 |
| 2021 | 0 | $0 |
| Bank NameBank | CityCity | Closing DateClosing |
|---|---|---|
| Heartland Tri-State Bank | Elkhart | July 28, 2023 |
| First Republic Bank | San Francisco | May 1, 2023 |
| Signature Bank | New York | March 12, 2023 |
| Silicon Valley Bank | Santa Clara | March 10, 2023 |
Generally speaking, credit unions are safer than banks in a collapse. This is because credit unions use fewer risks, serving individuals and small businesses rather than large investors, like a bank.
- Washington Mutual (WaMu), Henderson, NV ($309 Billion Assets) ...
- First Republic Bank, San Francisco, CA ($229 Billion Assets) ...
- Silicon Valley Bank, Santa Clara, CA ($209 Billion Assets)
What is the No. 1 bank in America? J.P. Morgan Chase is the number one bank in America in terms of total assets held, according to the Federal Reserve.
Bottom line. For the most part, if you keep your money at an institution that's FDIC-insured, your money is safe — at least up to $250,000 in accounts at the failing institution.
In most cases, the FDIC will try to find another banking institution to acquire the failed bank. If that happens, customers' accounts will simply transfer over to the new bank. You will get information about the transition, and you will likely get new debit cards and checks (if applicable).
FDIC Insurance
Most deposits in banks are insured dollar-for-dollar by the Federal Deposit Insurance Corp. This insurance covers your principal and any interest you're owed through the date of your bank's default up to $250,000 in combined total balances. You don't have to apply for FDIC insurance.
Did Warren Buffett buy Capital One?
News about Capital One Financial Corp.
Capital One''s (COF) shares rallied when Warren Buffett bought the lender, making it a potentially good investment for shareholders in 2024. Click here to re...
Wells Fargo, along with thousands of other financial institutions, is FDIC-insured. FDIC insurance limits cap at $250,000. The FDIC insures certificates of deposit and money market accounts, along with traditional checking and savings accounts.
Which Bank Stocks are Safer? The GSIBs include large firms such as JPMorgan Chase, Bank of America, Wells Fargo WFC, and Citigroup—banks so critical to the operations of the global financial system that they're unlikely to be allowed to collapse.
| Rank | Bank name | Total assets (billions of US$) |
|---|---|---|
| 1 | JPMorgan Chase | $3,898 |
| 2 | Bank of America | $3,153 |
| 3 | Citigroup | $2,368 |
| 4 | Wells Fargo | $1,909 |
Is Chase safe? Chase is regulated by the Financial Conduct Authority (FCA) and customer deposits of up to £85,000 (£170,000 for joint accounts) are protected under the Financial Services Compensation Scheme (FSCS). This means, if Chase went out of business, the FSCS would step in to cover up to this threshold.
