Bank Failures in Brief – 2024 (2024)

FAQs

Which banks are collapsing in 2024? ›

First Bank Failure of 2024 Near Anniversary of SVB, Signature, and First Republic Failures. The seizure and subsequent sale of Republic Bank comes a little more than a year after a series of bank failures that rocked the industry in 2023, as Silicon Valley Bank and Signature Bank shut down in March 2023.

There is 1 bank failure in 2024. See detailed descriptions below. For more bank failure information on a specific year, select a date from the drop down menu to the right or select a month within the graph.

Earlier last year Silicon Valley Bank failed March 10, 2023, and then Signature Bank failed two days later, ending the unusual streak of more than 800 days without a bank failure. Before Citizens Bank failed in November 2023, Heartland Tri-State Bank failed July 28, 2023 and First Republic Bank failed May 1, 2023.

Banks can fail for many reasons, the majority of which fall into one of three broad categories: A run on deposits (leaving the bank without the cash to pay customer withdrawals). Too many bad loans/assets that fall sharply in value (eroding the bank's capital reserves).

Bank of Scotland, Halifax and Lloyds to close 177 branches in 2024/25 – here's the full list, plus alternatives. Bank of Scotland, Halifax and Lloyds, which are all part of the Lloyds Banking Group, will shut at least 177 of their bank branches in 2024 and 2025, the Group has confirmed.

Experts say the number of bank branches has been falling nationwide since the Great Recession, but the trend accelerated after the onset of the coronavirus pandemic. They say the closures impact small business owners, rural residents and low- to moderate-income communities the most.

The receivership of Washington Mutual Bank by federal regulators on September 26, 2008, was the largest bank failure in U.S. history.

Which other US banks are at risk? ›

Beyond SVB

On May 1, 2023, the FDIC announced that First Republic had been closed and sold to JPMorgan Chase, becoming the third bank that failed during 2023, following Silicon Valley Bank's collapse and the closure of Signature Bank on 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.

If your bank closes, you should receive notification of what will happen to your money from the FDIC or NCUA, the acquiring bank or both. You'll automatically have an account at the new bank, or the FDIC or NCUA will issue you a payment returning your funds.

Key takeaways

Most banks in the US are insured by the FDIC, which provides coverage up to $250,000 per depositor, per FDIC bank, per ownership category. In the event of a bank failure, insured deposits are guaranteed to be returned within two business days by the FDIC.

Moody's has a negative outlook on the U.S. banking industry for 2024. Fitch gave the sector a deteriorating outlook, expecting a “moderate amount” of bank failures over the course of the year.

Your money is safe at Capital One

The FDIC insures balances up to $250,000 held in various types of consumer and business deposit accounts.

Institutions on FDIC's 'problem bank list' climbs to highest point since Q1 2021. The number of banks and total assets on the Federal Deposit Insurance Corp.'s "problem bank list" increased again in the 2023 fourth quarter. There were 52 banks on the list for a total of $66.3 billion in assets at Dec.

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.