how many us banks have collapsed in the past ten years
HalfDime
Posts: 205 ✭✭✭
In the past ten years, from 2015 to 2025, there have been 20 bank failures in the United States. The most significant collapses occurred in 2023, with the failures of Silicon Valley Bank, Signature Bank, and First Republic Bank, which were among the largest bank failures in U.S. history.
2023: 5 bank failures, including Silicon Valley Bank, Signature Bank, and First Republic Bank
2024: 2 bank failures - Republic First Bank and First National Bank of Lindsay
2025: 1 bank failure so far - Pulaski Savings Bank
The period from 2015 to 2022 saw relatively few bank failures, with some years having no failures at all. However, the dramatic collapses in 2023 made it the biggest year ever for bank failures in terms of total assets, with $548.7 billion in combined assets from failed banks.
It's important to note that while these recent failures are significant, they are far fewer in number compared to the period between 2008 and 2015, when about 500 bank failures occurred.
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As long as we have a credit card, bank deposits are insured up to FDIC limits. Once the credit card goes away, watch out.
Comments
Are you thinking the failure rate may be on the upswing again? And to expect more?
Reasons for failure?
The most common reason for bank failures is inept management. That was particularly true, for example, in the case of Silicon Valley bank.
600 banks a year failed from 1921-29.
We lost 9,000 banks in all from 1930-33. 20% of all deposits were gone.
We lost about 1,000 banks in the S&L Crisis of the 1980's, with a peak of about 400 in 1989 or 1990.
In the GFC, we lost about 150 banks.
In 2023 we lost under 5.
We keep losing about the same amount in dollar-adjusted GDP-adjusted deposits but the total number of banks goes DOWN because capital ratios have gone UP and leverage is down DRAMATICALLY.
Banks are the best-capitalized since the 1950's. Mike Mayo, bearish on banks and one of Wall Street's top banking analysts, is bullish on banks for the first time in 2 decades.
Usually leverage. Asset quality is irrelevant or at worst secondary.
Carlyle Capital (not a bank, a REIT) invested only in AAA-backed Treasuries and MBS....but at a 30-to-1 leverage ratio which means they go down 3%, your capital is gone.
Probably not much. M&A will take care of weak banks. After 15 years of regulatory overkill, the banks will be allowed to make money again.
Which means the more money a bank loans out that it does not actually hold, the greater risk it takes with it's depositor's money. Didn't this kind of leveraged banking blow up in 2008? LOL
Note that this "leveraged" method of lending is a major way that new money is created out of thin air.
(Keep some extra some where, let wifey or son know, fwiw)
How many have failed since the first one was created?
And yet here we all are, alive and kickin'.
at least until your bank fails. But then again, it's always about you. isn't it.
I'm not so sure that is really the important point.
https://pmbug.com/threads/what-is-risky-in-life-zero-reserve-or-full-reserve-banking.5723/
Yelling at clouds on pmbug.com