Although the number of firms on the FDIC’s list remains relatively low compared with historical highs, it’s a reversal in a trend of several consecutive quarters of declines. Wednesday’s report spans a period in which three US banks buckled, including Silicon Valley Bank and Signature Bank.
The number of banks with financial, operational or managerial weaknesses increased during the first three months of this year, according to the Federal Deposit Insurance Corp (FDIC).
The FDIC said on Wednesday that the number of lenders on its confidential “Problem Bank List” increased by four to 43 between January and March. The total assets held by those lenders rose to US$58 billion ($78.65 billion) from US$10.5 billion in the previous period, the regulator said in its Quarterly Banking Profile.
