US regional banks, the weakest link a year after the fall of Silicon Valley Bank. Concerns have shifted to exposure to commercial real estate credit.
IMF estimates that vulnerable US banks have 5.5 trillion in assets, 23% of the total banking assets. For now, NYCB's crisis appears contained. However, given the interconnectedness of the financial system, even the bankruptcy of a non-systemic entity can threaten financial stability. The banking crisis of a year ago can be explained as a butterfly effect—or coronavirus effect—of the pandemic.