At least 186 U.S. banks could go bankrupt following Silicon Valley Bank, economists at four U.S. universities warned in a published paper. It is informed by RBC referring to The Wall Street Journal.

The work analyzed the effect of the Fed's rate hikes on the assets of banks and their financial stability. According to the data provided, these actions have led to a decrease in the value of bank assets by 10 - 20%. Moreover, if half of all uninsured deposit holders decide to withdraw their deposits, it would threaten the financial health of 186 banks as well as put insured deposits worth $300 billion at risk. Meanwhile, the losses would increase if bank assets began selling off at the same time.

Silicon Valley Bank was the 16th largest bank in the United States by assets and was the largest bank in the country in 15 years to collapse.