The Wall Street Journal
Rising Rates Likely Hit Bank Balance Sheets in Quarter
A surge in interest rates likely worsened unrealized losses on bonds and loans held by U.S. banks in the third quarter, further straining their balance sheets as they face pressure to pay more to keep depositors. Unrealized losses were a key cause of Silicon Valley Bank’s failure in March, which spurred other bank runs. Total deposits at U.S. commercial banks were little-changed since the end of the second quarter, according to the Federal Reserve’s latest data, although they are down 5% since their peak level in April 2022.