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According to an April survey, public opinion about banks appears to be declining as the industry struggles to contain the collapse of several high-profile financial institutions in recent months.
A Gallup poll in the United States in April of at least 1,000 respondents found that 48% said they were worried about their money in the bank, and nearly 20% said they were “very worried.”
However, it should be noted that the survey was conducted after the collapse of Silicon Valley Bank and Signature Bank, but before the collapse of First Republic Bank at the end of April.
Republicans, lower-income adults and those without a college degree are more worried than their counterparts about the safety of their money in banks or other financial institutions. https://t.co/qhaQqu3mW6
— GallupNews (@GallupNews) May 7, 2023
Gallup concluded that the level of anxiety was on par with the level measured during the last banking financial crisis in 2008, “when financial institutions previously thought to be ‘too big to fail’ collapsed.”
“Latest readings are similar to 2008 data. In September of that year, shortly after the collapse of Lehman Brothers, which remains the largest bankruptcy filing in US history.”
186 American banks are at risk
Meanwhile, experts at the Hoover Institution think tank postulate that if half of uninsured depositors withdraw all their cash, 186 US banks will be at “potential risk of impairment.”
These banks have total assets of $300 billion but represent less than 5% of the estimated 4,135 FDIC (Federal Deposit Insurance Corporation) insured commercial banks in the United States.
In addition, California-based PacWest, Arizona-based Western Alliance and Memphis-based First Horizon Banks are all hanging by a thread after last week’s share price crash, according to reports.
On the subject: Banking crisis: what does this mean for cryptocurrency?
Earlier this month, Britain’s Telegraph published a more revealing report that said half of the banks in America could be insolvent.
He cited a study published in April by Stanford University banking expert Professor Amit Seru, who estimated that more than 2,315 US banks currently have assets worth less than their liabilities.
“The market value of US banking system assets is $2.2 trillion lower than their book value suggests, including held-to-maturity loan portfolios,” he said.
