There are still banks prone to the runs that brought down SVB and Credit Suisse, regulators warn

On October 22, financial markets were calm, but concerns about budget deficits and rising bond yields were growing. High bond yields, driven by the Federal Reserve’s interest rate hikes to curb inflation, contributed to the collapse of banks like SVB in March 2023.
A new Financial Stability Board (FSB) report highlighted ongoing vulnerabilities in banks, especially those with funding issues and unrealized losses. Life insurers and non-bank real estate investors also face risks from rising rates. Despite some positive indicators, such as a rebound in banking ETFs and Deutsche Bank’s low commercial real estate provisions, vulnerabilities remain, particularly in the rapid spread of financial concerns through social media.