What the numbers say: The amount of U.S. bank failures has dropped significantly over the past 10 years, but there have been three bank failures this year after zero the past two years. In 2013, there were 24 bank failures in the United States, which was the most over the past 10 years. But overall, the numbers started trending downward after 2010, when there were 157 bank failures. Relevance: U.S. regulators are preparing to force large banks to have more of a financial footing to help alleviate problems of bank failures. The proposed changes could raise the overall capital requirement to roughly 20% on average for larger banks. No bank will have the same amount, as the number would depend on the firm's business activities. This all comes after Silicon Valley Bank and two others failed earlier this year. However, with higher capital requirements, it could cause banks to raise fees for consumers and be more stringent about offering loans. Historical data: From 2001 to 2007, there were minimal bank failures. But the stock market crash of 2008 caused a load of closures, with 140 in 2009, leading to the high mark in 2010. 2011 saw 92, which started a downward trend, and the numbers have been nowhere near since. |
