Silicon Valley Bank and Signature Bank collapsed in March, triggering widespread fears of a domino effect among other mid-sized regional banks in the U.S.
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People line up outside the shuttered Silicon Valley Bank headquarters in Santa Clara, California, on March 10, 2023. Typically, smaller banks that are publicly traded are required to publish annual reports about their finances on Form 10-K and quarterly reports on Form 10-Q. Those documents can be found on the Securities and Exchange Commission's "Among other things, the 10-K and 10-Q offer a detailed picture of a company’s business, the risks it faces, and the operating and financial results for the fiscal year or quarter, as applicable," the SEC said of the forms.
"What has triggered some of the bank problems at SVB and Signature have been when customers held large amounts of deposits with those banks and then withdrew those deposits quickly for fear the bank may fail and [that] the FDIC may not cover those deposits," Johnston said.Finally, customers should consider asking the branch manager about how the bank invests its money, including how much is held in securities, Treasuries, structure products and non-local investments.