As we know U.S. banks keep losing more then 73 billion dollars every month for the last 12 months.
Many prediction may scare consumers and many have bean scared already of future banking crises and the rise of the interest rates.
It raises serious question about the banking structure and the crisis that’s gone get worse.
What’s true behind all this is it intentional or incompetence there is no clear answer to this question.
Why U.S. banks hold 3.3 trillion in cash and are we expecting a recession in 2024?
There are so many open question and there are not a complete answer to all, but it all started with two regional banks Silicon Valley and Signature bank who failed. The reason those two banks have failed is that they run out of cash. Many consumers have thought that this two banks have been bankrupt but there was a bank-run not enough cash in the moment for consumer demand. Such occurrences are unusual, but they have caused distrust in banks.
U.S. banking crisis wont be over soon but it will get worse because majority of reginal banks are exposed to commercial real estate loans. The reason banks are keeping large amount of cash is because they are afraid that the situation with the Silicon Valley and Signature bank will not repeat itself. US banks are preparing for the worst case scenario.
Rise on consumer delinquencies and loans will get worse. That means that the banks will have to take a loss on bad loan.
Many economists expect recession in 2024, and a risk of global banking crises who’s gone impact as all.