International rating agency Moody’s Investors Service has changed its outlook for the U.S. banking system to “negative” from “stable,” the agency said in a statement.
The decision follows “a rapidly deteriorating operating environment” following the bankruptcies of Silicon Valley Bank, Signature Bank and Silvergate Bank.
“Although the Treasury Department, the Fed and the Federal Deposit Insurance Corporation have announced that all SVB and Signature Bank depositors will receive full compensation, the rapid and significant decline in depositor and investor confidence underscores the asset-liability management risks among U.S. banks, which are exacerbated by rising interest rates,” the press release said.
