There is a scramble among smaller banks as their stock prices are taking a huge hit. For example, the regional bank Western Alliance saw its share price plummet after SVB collapsed in March, and now it’s down about 75 percent since the start of the year. Though, the bank said its deposits are stable, it hasn’t seen any unusual deposit flows, about 75 percent of its deposits are insured, and it has a strong capital base.
NTD speaks to Joseph Trevisani, a senior analyst at FXStreet, who says Western Alliance will be able to convince investors that it is still viable. He mentioned that the main problem is one of depositor confidence, which he says needs to be addressed by the government for the banking system as a whole.
