Moody’s Investors Service cut its view on the entire US banking system to negative from stable.
“We have changed to negative from stable our outlook on the US banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY,” Moody’s wrote in the report.
Even with regulators stepping in to cushion the damage, the firm which provides rating services warned that other banks with unrealized losses or uninsured depositors still could be at risk with adverse effects on funding, liquidity, earnings and capital.
