2023 Bank Failures Surpass $548 Billion, Exceeding 2008 Crisis Impact
In 2023, the collapse of First Republic, Silicon Valley, and Signature banks marks the largest U.S. bank failures in over two decades, surpassing the total asset losses from the 2008 financial crisis.
Taylor Tompkins brings over ten years of expertise in business and economic journalism, dedicating thousands of hours to interviewing experts, analyzing financial data, and crafting insightful articles. She currently serves as the Economics Editor at Investopedia.
Though only mid-year, 2023 has witnessed unprecedented bank failures that outpace any in the last 20 years.
First Republic Bank (FRC), Silicon Valley Bank, and Signature Bank rank as the second, third, and fourth largest bank collapses in U.S. history. Remarkably, their combined assets of $548.5 billion exceed the total assets of all banks that failed during the 2008 financial crisis by $175 billion.
This figure is also just $173 billion less than the cumulative assets of all bank failures since 2001, underscoring the magnitude of 2023's banking turmoil.
The rapid downfall of these institutions unfolded within approximately two months. The crisis began in March when the Federal Deposit Insurance Corporation (FDIC) took control of Silicon Valley Bank and Signature Bank, managing their assets and liabilities.
This triggered instability across regional banks, heavily impacting First Republic Bank. Despite efforts to stabilize through stock price recovery and seeking buyers, First Republic was ultimately placed under FDIC receivership early Monday.
The FDIC's Deposit Insurance Fund faces an estimated loss of $36 billion due to these collapses.
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