![]() ![]() ![]() Signature Bank was supposed to have its own examination team through the FDIC’s New York office. On the supervisory side, the FDIC acknowledged it fell short when it came to providing Signature Bank with adequate and timely reviews, citing staffing shortages at the agency. Staffing shortages at FDIC hindered oversight of bank The FDIC said the bank was overreliant on uninsured deposits, which accounted for 90% of overall deposits at the end of 2022, according to FDIC quarterly banking data. Signature Bank had $110 billion in assets at the end of 2022, making it the 29th-largest US bank. “Even though they were crypto cash deposits, it was a traditional kind of bank run.” “When that industry started to turn and interest rates started to rise, those deposits started leaving the bank,” Marshall Gentry, chief risk officer at the FDIC, said on a call with reporters Friday. In particular, bank management did not fully understand the risks associated with accepting crypto deposits, which comprised more than 20% of its total deposits, the FDIC report said. But the FDIC said that was not the root cause of Signature Bank’s failures. The collapse of Signature Bank was due to “poor management,” according to a report from the Federal Deposit Insurance Corporation released Friday.īank management “did not always heed FDIC examiner concerns, and was not always responsive or timely in addressing FDIC supervisory recommendations,” the report said.Ĭontagion effects from Silicon Valley Bank’s failure and Silvergate Bank’s self-liquidation, which occurred just days before Signature Bank was forced to close, helped ignite the run on deposits, the FDIC report stated.
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