In contrast to what happened during the Great Recession, Silicon Valley Bank and Signature Bank's failures involved deposits, bonds, and liquidity rather than credit. SVB served the start-up, technology, and venture capital (VC) sectors substantially, therefore deposits increased at SVB in 2020, a time when VCs were investing a lot of money and start-ups were raising money at insane prices and coming public in large numbers. Because of these failures, many people are concerned about the safety of their bank accounts.
The Federal Deposit Insurance Corporation (FDIC) offers insurance to almost all banks, which is good news. This insurance covers a variety of deposit accounts, including checking, savings, and money market accounts, and provides $250,000 "per depositor, each covered bank, for each account ownership type". Also, the FDIC said that you can open multiple accounts at different banks. As long as a bank includes the FDIC symbol, David Sacco (an instructor in finance and economics) added, no one should worry about their deposits being lost.
You may also check this 2022 List of Global Systemically Important Banks that are regarded as "too big to fail."
JP Morgan Chase
Bank of America
Bank of China
Industrial and Commercial Bank of China
Mitsubishi UFJ FG
Agricultural Bank of China
Bank of New York Mellon
China Construction Bank
Groupe Crédit Agricole
Royal Bank of Canada
Sumitomo Mitsui FG
To further explain the strength of these banks, the Financial Stability Board (FSB) member authorities apply the following requirements to G-SIBs:
■ Higher capital buffer
■ Total Loss-Absorbing Capacity (TLAC)
■ Higher supervisory expectations
There you have it! Just bear in mind that you must take a few simple safeguards in order to review your current finances.