Banking crisis: It’s when a bank or a financial company is in trouble and people start getting worried about their money. This week, a bank in Silicon Valley that focuses on technology and a bank that deals with cryptocurrency both went bankrupt, which made some people scared that there might be a bigger problem in the banking world.
Here’s what’s really going on: Charles Schwab shares took a big hit on Monday due to concerns over the recent collapses of Silicon Valley Bank and Signature Bank. Schwab is defending its portfolio and reassuring investors that it has access to plenty of liquidity.
https://twitter.com/CNBC/status/1635326540434251779
In fact, Schwab has a low loan-to-deposit ratio and more than 80% of its total bank deposits are insured by the FDIC. Plus, many analysts predict that Schwab’s retail brokerage deposit model won’t face the same kind of run as Silicon Valley Bank did.
