It’s been a year since the collapse of Silicon Valley Bank (SVB), and concerns about US regional banks linger. But March 2024 isn’t the same as March 2023 says Justin Livengood, a Senior Portfolio Manager and Senior Research Analyst covering financial services, health care, and real estate. Justin recently returned to the Greater Possibilities podcast to talk about more recent concerns about US regional banks and important differences between the situation now and one year ago.
Among the highlights:
- At the time of the failures of First Republic, Silicon Valley Bank, and Signature Bank in 2023, there were some very anxious days and weeks. Today, while there are some incremental concerns to consider, Justin doesn’t feel it’s nearly as much of a dangerous situation as it was last March.
- Justin doesn’t believe there are any hidden issues lurking in the banks. He says it’s fairly well known what regional banks own at this point and what their exposures are, and stress testing forces banks to consider what is going to happen to their loans and their assets in different economic scenarios. He says the industry is well-capitalized in general.
- However, the process of banks getting properly capitalized building reserves has slowed the pace of new loans. This has paved the way for private credit providers to fill the gap, which Justin says is a durable trend.
Listen to the full interview:
The state of the US banking system a year after SVB
A year after the collapse of Silicon Valley Bank (SVB), Justin Livengood returns to the podcast to talk about more recent concerns about US regional banks and important differences between the situation now and one year ago.
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Originally Posted on March 22, 2024
The state of the US banking system a year after SVB by Invesco US
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