Recent banking failures add another reason to halt interest rate hikes

The recent failures of Silicon Valley and Signature banks and chaos in other corners of the banking sector definitely provide a new twist to this debate.

Something broke, but the Fed's still expected to push rates higher

“If the Fed is successful at corralling the recent market volatility and ringfencing the traditional banking sector, then it should be able to ...

Looking back at the banking crisis of 2023 - TheStreet

But with every hike of the Fed funds rate, the long-term Treasury securities banks held lost value — this phenomenon is known as interest-rate risk. The Fed ...

Why economists are warning of another US banking crisis

They might react with higher lending rates or by making less credit available to customers, potentially weakening the economy. This could ...

Biggest Winners And Losers From The Fed's Interest Rate Cut

6-7 meeting, dropping the federal funds rate by 25 basis points, to a target range of 4.5 to 4.75 percent. It's the second meeting in a row that ...

OFR Brief: Some U.S. Banks May Remain Vulnerable to Losses in ...

higher interest rates, could set conditions for future bank failures. ... the recent interest rate increases, allowing them to report ...

Bank Failures, Fed Rate Hikes, and Risks to the Financial System

First, rapidly rising interest rates and Fed rate hikes over the past year created financial stresses on bank balance sheets. Bonds had their ...

Did the Fed Contribute to SVB's Collapse? | Chicago Booth Review

Recent rapid rate increases have generated large losses on interest-sensitive securities held by banks, compared with the previous period of quantitative ...

Why the Fed will likely raise rates two days after First Republic failed

For the second time this year, the Federal Reserve is gearing up to raise interest rates right after a bank failure.

Fed raises interest rates again in wake of bank failures | PBS News

The Federal Reserve raised interest rates again against the backdrop of troubles in the banking industry. The hikes are being blamed by some ...

Banking Turmoil May Precede Long-Awaited Recession | Fannie Mae

... prevent further bank runs (though risk of additional bank ... interest rate forecast, which we finalized before the recent bank failures.

March 2023 Bank Failures—Risky Business Strategies Raise ...

Rising interest rates: As interest rates rose, SVB's lower-yielding securities (like bonds) lost value. · Digital asset market volatility: ...

Perspectives on the Banking Turmoil of 2023 | Richmond Fed

If that would have happened, losses for banks holding low-interest securities would have been less substantial: Deposit rates would have come back down, and the ...

US regulators clamp down in bid to prevent more bank failures

WASHINGTON/NEW YORK, Dec 6 (Reuters) - U.S. bank supervisors are increasing scrutiny of lenders' risk management practices and taking ...

A Brief History of U.S. Bank Failures - American Deposit Management

... additional avenue for individuals to take ... These interest rate increases took their toll on some businesses and regional banks.

Dramatic collapses made 2023 the biggest year ever for bank failures

In July, the Fed proposed significantly higher capital requirements for some banks, especially larger ones — an idea that has sparked fierce ...

Bank Failures in Brief – Summary - FDIC

There were 568 bank failures from 2001 through 2024. See Summary by Year below. For more bank failure information on a specific year, select a date from the ...

How are rising interest rates affecting banks? - The Banker

In March, the collapse of three regional banks in the US was attributed to a range of factors, including aggressive hikes in interest rates and ...

Interest Rate Risk, Bank Runs and Silicon Valley Bank

Silicon Valley Bank largely invested these deposits in long-term bonds, especially mortgage-backed securities, in an effort to increase yield ...

When a U.S. Bank Collapses: Understanding Causes and Impact

Clarke: Banks are impacted by interest rates and inflation rates. The Fed has raised rates quickly, from 0% to close to 5%, to combat inflation, ...