Bankig Crisis: 27,000 banks have collapsed in America in 100 years, know in which bank people have deposited the most money
[ad_1]
JP Morgan going to buy First Republic Bank is America’s largest bank in terms of deposits. This bank has 16.1 percent of the total deposits of America. 75 percent of the country’s total deposits are with 15 big banks. Bank of America is at number two in this list. 14.8 percent of the country’s deposits are deposited in this bank. It was followed by Wells Fargo (10.9 percent), Citibank (5.8 percent), US Bank (3.4 percent), Truist (3.4 percent), PNC Bank (3.3 percent), TD Bank (2.9 percent), Charles Schwab (2.7 percent) and Capital One (2.6 percent) is the number.
Why is there an uproar this time
The record keeping of bankrupt banks in America started from the year 2001. Since then more than 560 banks have collapsed. In the year 2009, 140 banks and in the year 2010 maximum 157 banks were drowned in the country. Prior to that, in the year 2008, 25 banks had failed. It was the largest banking crisis in modern US history. This time only three banks have sunk and still why is there so much ruckus? The reason for this is that in terms of assets in the US, this is the biggest banking crisis since 2008. The combined assets of the 25 banks that failed in 2008 were $374 billion. This time the combined assets of Silicon Valley Bank, Signature Bank and First Republic Bank are around $530 billion.
Last year US banks lost $620 billion. The way the US Fed Reserve is raising interest rates to control inflation, many more banks are at risk of drowning. After Silicon Valley Bank and Signature Bank, now the sinking of First Republican Bank has stirred depositors. People are increasingly withdrawing money from small banks and depositing them in big banks. Experts say that due to less deposits in banks, they will give less loans. This will stop the flow of capital in the economy and increase the risk of recession. Its effect can be seen on the whole world including India.
[ad_2]
Source link
