Monday, March 27, 2023

Calculating a Bank's Uninsured Deposits

The critical fact contributing to the Silicon Valley Bank and Signature Bank's demise was the level of uninsured deposits at each institution, estimated to be at 94% and 90% respectively. Many community bankers received concerned calls after the bloody weekend of March 10th through 12th from depositors that had deposits that exceeded the FDIC insured limits.

Most financial institutions, particularly community financial institutions, have jumbo deposits, as deposits over $250,000 are known, nowhere near SVB and Signature. 

But how much do they have? I recorded this tutorial so you can calculate on your own using publicly available data.

Apologies for using "unsecured" so often in the video when I meant uninsured.

Youtube link if you have difficulty viewing here:

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