According to a new report from Florida Atlantic University, 94 US banks are at serious risk of a run on uninsured depositors if signs of financial weakness appear. These banks, including seven major US financial institutions, report that the ratio of uninsured deposits to total deposits is 50% or higher. The liquidity risk index due to uninsured deposits shows that BNY Mellon is at the top with a 100% ratio, followed by other banks like State Street and Citibank. Professor Rebel A. Cole says these banks are more vulnerable to liquidity crises because uninsured depositors are incentivized to withdraw their money at the first sign of risk quickly.
Source: franknez.com
