US Banking System at Risk: Regulators Knew of SVB-Type Collapse Five Years Ago.

A report from the Financial Stability Oversight Council (FSOC) shows that regulators knew about the risk posed by Silicon Valley Bank's (SVB) high proportion of uninsured deposits five years before its collapse, but no action was taken to reduce the risk. The report warned that uninsured deposits are at a much higher risk of bank runs than insured deposits. Despite this, regulators approved SVB's merger and did not subject the bank to enhanced supervision. Experts say high proportions of uninsured deposits are a major bank-run risk factor that should have prompted regulatory action.