According to Odaily Planet Daily, an analysis report by Klaros Group shows that following several high-profile bank failures in 2023 and the collapse of Republic First Bank in Philadelphia last week, hundreds of US banks are at risk of failure. The study shows that small banks and regional banks are under pressure due to the heavy burden of commercial real estate loans and the current high interest rate environment. Among the more than 4,000 financial institutions in the United States, 282 are under pressure.
“Most of these banks are not insolvent or even close to being insolvent,” said Brian Graham, co-founder and partner at Klaros Group. “They’re just stressed out and probably not going to fail in large numbers. But that doesn’t mean that communities and consumers won’t be hurt by that stress.”