The Federal Deposit Insurance Corporation has released a staff study, "Dissecting Depositor Flight: An Analysis of the Spring 2023 Bank Failures," based on transaction-level deposit and wire-transfer data from Silicon Valley Bank, Signature Bank, and First Republic Bank. The study finds that the runs were unprecedented in size and speed, with depositors holding substantial uninsured balances far more likely to withdraw, while fully insured retail depositors generally did not run and at times recorded net inflows, showing the stabilizing effect of deposit insurance. Deposits at all three banks were concentrated among a small number of large customers, and the top 0.5 percent of depositors were significantly more likely to run, often withdrawing all or nearly all balances across accounts, including business operations accounts. Between March 7 and March 17, Silicon Valley Bank lost 60 percent of its March 6 domestic deposits, Signature Bank lost 58 percent, and First Republic Bank lost 36 percent, or 54 percent excluding the USD 30 billion consortium deposit. Most outflows left by wire transfer in the first few days, and substantial withdrawals continued at Silicon Valley Bank and Signature Bank after they entered bridge banks and all deposits were protected under the systemic risk exception.
Federal Deposit Insurance Corporation 2026-05-14
Federal Deposit Insurance Corporation releases study on three 2023 bank failures showing uninsured and largest depositors drove the fastest bank runs in US history
The Federal Deposit Insurance Corporation published a staff study on the Spring 2023 failures of Silicon Valley Bank, Signature Bank, and First Republic Bank, finding that the runs were unprecedented in size and speed and driven primarily by depositors with substantial uninsured balances, while fully insured retail depositors generally remained. Deposits were highly concentrated, with the top 0.5 percent of depositors significantly more likely to withdraw nearly all balances. The banks lost 60 percent, 58 percent, and 36 percent of domestic deposits, respectively, between 7 and 17 March 2023. Most outflows occurred via wire transfer in the first days and continued even after Silicon Valley Bank and Signature Bank became bridge banks and all deposits were protected under the systemic risk exception.