Assessing the Ongoing Impact of the Banking Crisis on the Economy and Markets

Banks are still vulnerable after the collapse of Silicon Valley Bank and Signature Bank, and the Federal Reserve is set to release its investigation findings on Friday. While deposits may lead to the belief that banks are in better shape, they are not out of the woods yet, according to Moody's. Many banks are struggling to regain the deposits they lost from the SVB fallout, and the Fed's likely rate hikes at its upcoming meetings will lead to more deposit outflows. However, larger banks are well capitalized and are being properly managed to withstand the pressure that comes with rate hikes and other shocks.