Is the US Banking System Teetering on the Brink of a House of Cards

Community banks are grappling with a deposit crisis driven by technology and changing demographics. Customer loyalty has eroded, and money now moves swiftly due to lack of trust and the pursuit of higher interest rates. Over half of US banks are trading below book value, signifying widespread distrust in their financial stability. This unsettling trend may lead to further bank failures and consolidations, painting a bleak picture for the banking system’s future.