Hundreds of U.S. banks at risk of collapse in high-interest rate environment
According to an analysis report by Klaros Group, hundreds of American banks are at risk of collapse following several notable bank failures in 2023 and the recent collapse of Republic First Bank in Philadelphia.
The study shows that small and regional banks are under pressure due to the heavy burden of commercial real estate loans and the current high interest rate environment. Out of over 4,000 financial institutions in the United States, 282 are facing pressure.
Brian Graham, co-founder and partner of Klaros Group, said, "Most of these banks are not insolvent or even close to being insolvent. They are just under too much pressure and there may not actually be as many bank failures. But this does not mean that communities and consumers will not be affected by this pressure." (Bitcoin.com)
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