Public Trust In Banks Reaching Critical Lows As Economic Recession Continues

According to a recent Gallup survey conducted in the US, public trust in banks has declined significantly due to recent high-profile financial institution collapses and record setting inflation levels.

The survey, which polled at least 1,000 respondents in April, revealed that almost half of the participants were worried about their money in banks, with nearly 20% indicating they were extremely concerned.

It is worth noting that the poll was conducted after the collapse of Silicon Valley Bank and Signature Bank but before First Republic Bank failed in late April. Republicans, lower-income adults, and individuals without a college degree expressed more concern about the safety of their money in banks or other financial institutions than their counterparts.

Gallup noted that the current level of concern is similar to that of the 2008 financial crisis when several financial institutions that were believed to be too big to fail collapsed. In a separate report, the Hoover Institution think tank suggested that if half of all uninsured savers withdrew all of their cash, 186 American banks would be at potential risk of impairment.

Meanwhile, another report in the UK cited research published by Stanford University banking expert Amit Seru, estimating that over 2,315 US banks are currently holding assets worth less than their liabilities.