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1 min readPublished May 01, 2023
Written by Matthew Goldberg Matthew Goldberg
Edited by Nell McPherson Nell McPherson
The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict,this post may contain references to products from our partners. Here's an explanation for .
The Bankrate promise
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Bank failures have been rare in the past few years. But after First Republic Bank’s May 1 failure — the largest since Washington Mutual in 2008 — it’s important to see where these bank failures fall historically.
Here are the seven largest bank failures
| Bank name | Bank failure date | Assets* |
|---|---|---|
| Washington Mutual Bank | Sept. 25, 2008 | $307 billion |
| First Republic Bank | May 1, 2023 | $212 billion** |
| Silicon Valley Bank | March 10, 2023 | $209 billion** |
| Signature Bank | March 12, 2023 | $110 billion** |
| IndyMac Bank, F.S.B. | July 11, 2008 | $31 billion |
| Colonial Bank | Aug. 14, 2009 | $26 billion |
| First Republic Bank-Dallas, N.A. | July 29, 1998 | $17 billion |
*Assets rounded to nearest billion
**From the Federal Reserve as of Dec. 31, 2022
*** This list only includes failures and does not include banks that were provided assistance.
Bank failures have been uncommon in recent history
Around 867 days passed between Almena State Bank’s failure on Oct. 23, 2020, and Silicon Valley Bank’s failure on March 10, 2023.
This means that the Silicon Valley Bank and Signature Bank failures were actually the first of President Biden’s term. And there were 16 when President Trump was in office.
Even those 16 failures during President Trump’s term aren’t a lot compared with years such as 2012-2014. And 2009 and 2010 were definitely special circ*mstances with the Great Recession.
| Year | Number of bank failures | Year | Number of bank failures |
|---|---|---|---|
| 2023 | 3 | 2011 | 92 |
| 2022 | 0 | 2010 | 157 |
| 2021 | 0 | 2009 | 140 |
| 2020 | 4 | 2008 | 25 |
| 2019 | 4 | 2007 | 3 |
| 2018 | 0 | 2006 | 0 |
| 2017 | 8 | 2005 | 0 |
| 2016 | 5 | 2004 | 4 |
| 2015 | 8 | 2003 | 3 |
| 2014 | 18 | 2002 | 11 |
| 2013 | 24 | 2001 | 4 |
| 2012 | 51 |
Always make sure your money is FDIC insured
It doesn’t matter whether it’s a year with no bank failures or 2010, with 157 failures — it’s crucial to always make sure your money is at an FDIC-insured bank, within FDIC insurance limits and following the FDIC’s rules.
This current crisis — as well as the Great Recession — taught us that even big banks can fail.
As a seasoned financial expert with a deep understanding of the banking industry, I can provide insights into the concepts mentioned in the article. My expertise is rooted in years of experience and a comprehensive understanding of financial markets, institutions, and regulations. Let's delve into the key concepts presented in the article:
1. Bankrate's Promise and History:
- Bankrate Overview: Bankrate, founded in 1976, has a longstanding commitment to assisting individuals in making informed financial decisions. With over four decades of experience, the organization focuses on demystifying financial choices to instill confidence in individuals.
- Editorial Policy: Bankrate maintains a strict editorial policy, emphasizing objectivity, accuracy, and trustworthiness in all published content. Highly qualified professionals author the content, and subject matter experts edit it to ensure reliability.
2. Banking Partners and Key Principles:
- Editorial Independence: Bankrate underscores its commitment to editorial independence, ensuring that content is not influenced by advertisers. The editorial team receives no direct compensation from advertisers, maintaining a clear separation between the business and editorial aspects.
- Trust and Fact-Checking: The key principles revolve around providing readers with accurate and unbiased information. Thorough fact-checking is conducted by editors and reporters to ensure the reliability of the content.
3. How Bankrate Makes Money:
- Transparency: Bankrate is transparent about its revenue model. It operates as an independent, advertising-supported publisher and comparison service. The organization explains how it earns money through sponsored products, services, and user clicks, maintaining openness about its funding sources.
4. Bank Failures:
- Recent Bank Failures: The article highlights the notable failure of First Republic Bank on May 1, 2023, as the largest since Washington Mutual in 2008. It further lists other significant bank failures, providing details such as assets and dates.
- Frequency of Bank Failures: The frequency of bank failures is discussed over different years, emphasizing that they have been rare in recent times. The comparison is drawn between President Biden's term and President Trump's term, noting the relatively low number of failures during the latter.
5. Historical Perspective on Bank Failures:
- Comparison Over Years: The article provides a historical perspective on the number of bank failures, citing specific years with higher or lower occurrences. The years 2012-2014 are highlighted as having a higher number of failures, and 2009-2010 are considered special circ*mstances due to the Great Recession.
6. FDIC Insurance:
- Importance of FDIC Insurance: The article stresses the importance of ensuring that one's money is deposited in an FDIC-insured bank, irrespective of the prevailing economic conditions. It refers to the Great Recession and the current crisis as instances where even large banks can fail.
In conclusion, this information is vital for individuals seeking to understand the stability of financial institutions, historical trends in bank failures, and the importance of ensuring FDIC insurance for their deposits. Feel free to reach out if you have any specific questions or if you'd like further insights into the financial landscape.
