What banks are collapsing in 2024?
2024 in Brief
The biggest laggard in the KRE is New York Community Bancorp which has tumbled more than 71% this year. Metropolitan Bank Holding Corp ., Kearny Financial , Columbia Banking System and Valley National Bancorp are down more than 30% in that time period.
If banks across the United States continue to shut down at their current rate, around 1,300 will close by the end of 2024. Steven Reider, the founder and president of Bancography, cited the growing confidence among banks in being able to provide sufficient financial services online.
Historically, small banks are more likely to fail than large banks because they concentrate on regional lending, have fewer revenue streams to diversify risk and possess less capital to absorb losses. However, robust regulatory oversight and FDIC insurance help mitigate the risk to depositors.
- First Republic Bank (FRC) . Above average liquidity risk and high capital risk.
- Huntington Bancshares (HBAN) . Above average capital risk.
- KeyCorp (KEY) . Above average capital risk.
- Comerica (CMA) . ...
- Truist Financial (TFC) . ...
- Cullen/Frost Bankers (CFR) . ...
- Zions Bancorporation (ZION) .
Recently, a report posted on the Social Science Research Network found that 186 banks in the United States are at risk of failure or collapse due to rising interest rates and a high proportion of uninsured deposits.
FDIC deposit insurance protects Capital One customers. Bank customers don't need to purchase deposit insurance—it's automatic for any deposit account opened at Capital One. Deposits are insured up to $250,000 per depositor, per ownership category at Capital One.
The result: A net 1,409 bank branches closed in 2023, compared with 1,854 in 2022, according to the S&P Global data. Both years were down notably from the all-time high in 2021.
Key Insights & Stats:
Bank branch numbers in the US have fallen by 6.5% since 2012. Based on current trends the number of physical banks could fall to fewer than 16,000 by 2030, a number not seen since 1965. Current trends suggest that all bank branches could be closed by 2034.
The largest bank failure ever occurred when Washington Mutual Bank went under in 2008. At the time, it had about $307 billion in assets. During the uncertainty of the banking crisis, however, Washington Mutual experienced a bank run where customers withdrew almost $17 billion in assets in less than 10 days.
What banks should I avoid?
- Wells Fargo. BBB customer review rating: 1.06/5. ...
- Credit One. BBB customer review rating: 1.11/5. ...
- Bank of America. BBB customer review rating: 1.06/5. ...
- Chase Bank. BBB customer review rating: 1.1 / 5. ...
- US Bank. BBB customer review rating: 1.1 / 5.
If your bank fails, up to $250,000 of deposited money (per person, per account ownership type) is protected by the FDIC. When banks fail, the most common outcome is that another bank takes over the assets and your accounts are simply transferred over. If not, the FDIC will pay you out.
Overall, Bank of America appears to be in a relatively healthy financial position and is not currently in imminent danger of collapse.
1. JPMorgan Chase. JPMorgan Chase, or Chase Bank, is the biggest bank in America with nearly $3.4 trillion in assets. It boasts a vast network of over 4,800 physical branches and more than 15,000 ATMs.
Among the safest US banks, according to Global Finance's November 2022 rankings, are AgriBank, US Bank, CoBank, AgFirst Bank, and Farm Credit Bank of Texas, primarily for those in the agricultural sector.
Bank | Forbes Advisor Rating | Learn More |
---|---|---|
Chase Bank | 5.0 | Learn More Read Our Full Review |
Bank of America | 4.2 | |
Wells Fargo Bank | 4.0 | Learn More Read Our Full Review |
Citi® | 4.0 |
Bank Name | Press Release | Closing Date |
---|---|---|
November Back to Top | ||
First Republic Bank, San Francisco, CA | PR-034-2023 | May 1, 2023 |
March Back to Top | ||
Signature Bank, New York, NY | PR-021-2023 PR-018-2023 | March 12, 2023 |
US eases restrictions on Wells Fargo after years of strict oversight following scandal. NEW YORK (AP) — The Biden administration eased some of the restrictions on banking giant Wells Fargo, saying the bank has sufficiently fixed its toxic culture after years of scandals.
Most deposits in banks are insured dollar-for-dollar by the Federal Deposit Insurance Corp. This insurance covers your principal and any interest you're owed through the date of your bank's default up to $250,000 in combined total balances. You don't have to apply for FDIC insurance.
Bank | The Ascent's Rating | FDIC Insured? |
---|---|---|
Western Alliance Bank | 4.25 | Yes |
SoFi | 4.00 | Yes |
Wells Fargo | 4.00 | Yes |
Axos Bank | 3.50 | Yes |
How do I know if my bank is safe from collapse?
If the bank fails, you'll get your money back. Nearly all banks are FDIC insured. You can look for the FDIC logo at bank teller windows or on the entrance to your bank branch. Credit unions are insured by the National Credit Union Administration.
For the most part, if you keep your money at an institution that's FDIC-insured, your money is safe — at least up to $250,000 in accounts at the failing institution. You're guaranteed that $250,000, and if the bank is acquired, even amounts over the limit may be smoothly transferred to the new bank.
Generally, credit unions are viewed as safer than banks, although deposits at both types of financial institutions are usually insured at the same dollar amounts. The FDIC insures deposits at most banks, and the NCUA insures deposits at most credit unions.
The pandemic triggered a rise in online banking, resulting in banks shedding physical locations and working to meet increased customer demand for electronic financial services. See where the closures are happening on CBJ's website here.
1. The rise of gen AI. Banks are likely to benefit more than other industries—our analysis indicates productivity could rise by 20–30% and revenue by 6%. Banks will need to not only utilize cloud and data effectively, but also to rethink work and talent.
References
- https://www.nerdwallet.com/article/banking/best-banks-and-credit-unions
- https://apnews.com/article/business-financial-services-signature-bank-6aa3564a8acda9098929abe4741fcbfd
- https://www.self.inc/info/the-death-of-the-banks/
- https://www.gbnews.com/money/us/bank-branch-closures-us-list
- https://www.forbes.com/advisor/banking/safest-banks-in-the-us/
- https://www.cnbc.com/2024/04/16/regional-bank-failures-may-be-ahead-fmr-fdic-chair-sheila-bair-warns.html
- https://www.marketwatch.com/guides/banking/list-of-failed-banks/
- https://www.eiu.com/n/the-collapse-of-two-us-banks-raises-the-stakes-for-the-fed/
- https://fortune.com/recommends/banking/chase-bank-review/
- https://www.americanbanker.com/news/why-banks-are-closing-so-many-branches
- https://finance.yahoo.com/news/7-banks-dump-now-bust-234758659.html
- https://www.marketwatch.com/guides/banking/chase-review/
- https://www.investopedia.com/what-happens-if-my-bank-fails-7378029
- https://www.linkedin.com/pulse/10-worst-banks-america-karen-e-peyton-
- https://www.noradarealestate.com/blog/which-banks-are-in-danger-of-failing/
- https://www.nerdwallet.com/reviews/banking/chase
- https://www.reuters.com/markets/us/regional-banks-face-big-hurdles-year-after-svb-collapse-2024-03-07/
- https://finance.yahoo.com/news/much-money-millionaires-put-checking-120013872.html
- https://finance.yahoo.com/news/15-biggest-bank-failures-us-184142673.html
- https://www.americanbanker.com/list/dramatic-collapses-made-2023-the-biggest-year-ever-for-bank-failures
- https://good-with-money.com/2024/02/19/top-5-least-ethical-banks-and-where-to-move-for-good/
- https://www.capitalone.com/bank/fdic/
- https://www.fdic.gov/resources/resolutions/bank-failures/in-brief/bfb2024.html
- https://www.accenture.com/us-en/insights/banking/top-10-trends-banking-2024
- https://www.businessinsider.com/personal-finance/banks-with-24-7-customer-support
- https://www.cnn.com/cnn-underscored/money/largest-banks-in-the-us
- https://www.usnews.com/banking/articles/credit-union-vs-a-bank
- https://gfmag.com/banking/worlds-safest-banks-2023-global-100/
- https://www.consumeraffairs.com/news/these-10-banks-produce-the-most-complaints-about-fees-040424.html
- https://www.lifestoryresearch.com/2022-americas-most-trusted-retail-bank
- https://www.marketwatch.com/guides/banking/largest-banks-in-the-us/
- https://www.bankrate.com/banking/what-happens-when-a-bank-fails/
- https://money.slickdeals.net/articles/safest-banks-in-the-us/
- https://www.thestreet.com/personal-finance/banks-most-at-risk-morningstar
- https://acxpa.com.au/call-centre-rankings/banks/
- https://www.usnews.com/banking/articles/is-my-money-safe-at-the-bank
- https://finance.yahoo.com/news/4-most-popular-banks-millionaires-150054420.html
- https://www.wallstreetzen.com/blog/worst-banks-in-america/
- https://www.bankrate.com/banking/biggest-banks-in-america/
- https://www.wsoctv.com/news/local/bank-america-is-closing-more-than-100-branches-this-year/7WHOOHJBRFGUHBY6HDVWNYVJQQ/
- https://www.forbes.com/advisor/banking/chase-bank-review/
- https://www.fdic.gov/resources/resolutions/bank-failures/in-brief/bfb2023.html
- https://www.forbes.com/advisor/banking/chase-vs-wells-fargo/
- https://www.dhakatribune.com/business/banks/341723/bb-tells-weak-banks-to-merge-with-strong-ones-by
- https://freefrombroke.com/the-8-least-evil-banks/
- https://www.bankwithunited.com/about-united/most-trustworthy-bank.html
- https://coincodex.com/article/33788/worst-banks-in-america/
- https://www.thepennyhoarder.com/bank-accounts/worst-banks/
- https://www.globalcitizensolutions.com/safest-banks-us/
- https://finance.yahoo.com/news/banks-best-dealing-identity-theft-130001499.html
- https://bestlifeonline.com/most-least-trusted-bank-news/
- https://time.com/personal-finance/article/chase-vs-bank-of-america/
- https://www.forbes.com/advisor/banking/most-popular-banks-by-state/
- https://groww.in/blog/best-savings-bank-accounts-you-can-opening
- https://www.magnifymoney.com/news/largest-banks-in-the-us/
- https://smartasset.com/checking-account/the-top-ten-banks-by-assets-held
- https://fintechmagazine.com/articles/top-10-banks-for-esg-in-2023
- https://www.noradarealestate.com/blog/is-bank-of-america-in-trouble/
- https://apnews.com/article/wells-fargo-comptroller-of-currency-sales-practices-scandal-d3f41b3dbab4de74462fd3fe2585d50e
- https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/
- https://www.forbes.com/advisor/banking/list-of-failed-banks/
- https://www.businessinsider.com/personal-finance/best-banks
- https://www.usnews.com/banking/articles/how-many-bank-accounts-should-i-have
- https://www.fool.com/the-ascent/banks/safest-banks-in-the-us/
- https://mashable.com/article/kim-kardashian-s-best-financial-moves
- https://www.creditdonkey.com/safest-banks-in-the-us.html
- https://www.forbes.com/advisor/banking/largest-banks-in-the-us/