In the United States, authorities' forceful and preemptive intervention after the failure of two prominent banks significantly reduces the risk of a broader destabilization of the U.S. banking and financial system. Since March 10, the U.S. Federal Deposit Insurance Corporation (FDIC) and state regulators have taken over California-based Silicon Valley Bank (SVB) and New York-based Signature Bank. Authorities have also taken additional measures to prevent a broader run on bank deposits following SVB and Signature Bank's failures, which were the second- and third-largest bank failures in U.S. history, respectively. This included invoking a systemic risk clause that allowed U.S. authorities to guarantee all deposits in the two banks beyond the regular $250,000 insurance cap guaranteed by the FDIC, which was meant to soften the impact of the bank failures on the U.S. economy and signal to those with deposits in other banks that their funds were safe. To ease funding...
