FDIC releases analysis of 2023 bank failures

The Federal Deposit Insurance Corporation released a detailed analysis of the 2023 spring bank failures. The FDIC describes the analysis of the failures at Silicon Valley Bank, Signature Bank and First Republic Bank as “a day-by-day look at depositor behavior” around each bank’s closure.

Uninsured deposits accounted for nearly three-quarters of deposits at SB and FRB and for 94% at SVB. All three banks also had large concentrations of deposits held by a relatively small number of depositors. Studies have shown that deposit composition varied meaningfully across banks, likely reflecting their different business models.

However, all three banks showed a concentration of deposits among a small number of large depositors. Consistent with public reports, the runs were unprecedented in both their size and speed. Read more of the analysis here.