US Banking System Faces Pressure with 63 'Problem Banks' and $517 Billion in Unrealized Losses due to High Interest Rates

Reported 6 months ago

According to the FDIC's first quarter report, the US banking system is grappling with 63 'problem banks' and $517 billion in unrealized losses, primarily caused by rising interest rates over the past two years. The real estate mortgage market has been particularly impacted, with steep losses on residential mortgage-backed securities due to higher mortgage rates in the first quarter. Despite the increase in problem banks and losses, the FDIC mentioned that the situation is still within the normal range for non-crisis periods at 1.4% of total banks.

Source: YAHOO

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