Real Assets
Ranked: The U.S. Banks With the Most Uninsured Deposits
The U.S. Top Banks by Uninsured Deposits
Today, there is at least $7 trillion in uninsured bank deposits in America.
This dollar value is roughly three times that of Apple’s market capitalization, or about equal to 30% of U.S. GDP. Uninsured deposits are ones that exceed the $250,000 limit insured by the Federal Deposit Insurance Corporation (FDIC), which was actually increased from $100,000 after the Global Financial Crisis. They account for roughly 40% of all bank deposits.
In the wake of the Silicon Valley Bank (SVB) fallout, we look at the 30 U.S. banks with the highest percentage of uninsured deposits, using data from S&P Global.
Which Banks Have the Most Uninsured Deposits?
Over the last month, SVB and Signature Bank went under at lightning speed.
Below, we show how their level of uninsured deposits compare to other banks. The dataset includes U.S. banks with at least $50 billion in assets at the end of 2022.
Top 30 Rank | Bank | Uninsured Deposits (%) | Total Assets (B) |
---|---|---|---|
1 | Silicon Valley Bank* | 93.8 | $209 |
2 | Bank of New York Mellon | 92.0 | $325 |
3 | State Street Bank and Trust Co. | 91.2 | $298 |
4 | Signature Bank* | 89.3 | $110 |
5 | Northern Trust Co. | 81.6 | $155 |
6 | Citibank NA | 73.7 | $1,767 |
7 | CIBC Bank USA | 73.1 | $51 |
8 | HSBC Bank USA NA | 70.6 | $162 |
9 | City National Bank | 70.3 | $97 |
10 | First Republic Bank | 67.4 | $213 |
11 | East West Bank | 65.8 | $64 |
12 | BMO Harris Bank NA | 60.5 | $177 |
13 | Comerica Bank | 60.4 | $86 |
14 | Western Alliance Bank | 56.3 | $68 |
15 | Frost Bank | 53.6 | $53 |
16 | Banco Popular de Puerto Rico | 53.1 | $56 |
17 | MUFG Union Bank NA** | 53.0 | $104 |
18 | Zions Bancorp. NA | 52.2 | $90 |
19 | JPMorgan Chase Bank NA | 52.0 | $3,202 |
20 | U.S. Bank NA | 51.4 | $585 |
21 | Synovus Bank | 50.7 | $60 |
22 | Bank of the West** | 50.7 | $92 |
23 | KeyBank NA | 50.0 | $188 |
24 | Fifth Third Bank NA | 48.4 | $206 |
25 | Goldman Sachs Bank USA | 47.6 | $487 |
26 | Citizens Bank NA | 47.5 | $226 |
27 | Manufacturers and Traders Trust Co. | 47.1 | $200 |
28 | First Horizon Bank | 46.2 | $79 |
29 | Bank of America NA | 46.1 | $2,419 |
30 | Huntington National Bank | 45.6 | $182 |
*Failed banks. **Acquired banks.
Bank of New York (BNY) Mellon and State Street Bank are the active banks with the highest levels of uninsured deposits. They are the two largest custodian banks in the U.S., followed by JP Morgan. Custodian banks provide critical infrastructure in the financial system, holding assets for safe-keeping for investment managers and transferring assets, among other duties.
Both BNY Mellon and State Street are considered “systemically important” banks.
Where these banks differ from SVB is that their loans and held-to-maturity securities as a percentage of total deposits are much lower. While these loans made up over 94% of SVB’s deposits, they made up 31% of BNY Mellon’s and 40% of State Street Bank’s deposits, respectively.
Held-to-maturity securities pose a greater risk to banks. Many of these holdings have lost value since interest rates have risen at a sharp clip. This presents interest-rate risks to banks. Consider how the value of long-term U.S. Treasurys declined about 30% in 2022. In this way, if a bank sells these assets before they mature, they take on a steep loss.
Overall, 11 banks on this list have loans and held-to-maturity assets that are over 90% of their total value of deposits.
Backstop Measures
To prevent wider ramifications, regulators implemented emergency actions. This was done by protecting all deposits of SVB and Signature Bank days after they announced failure.
The Fed also set up an emergency lending facility for banks. This Bank Term Funding Program (BTFP) was created to provide additional funding for banks if depositors pulled their money. It was also set up to prevent banks from interest-rate risk.
So far, more than $50 billion in loans have been withdrawn from the BTFP, up from $11.9 billion in its first week. (The Federal Reserve updates these numbers on a weekly basis.) This has led the Fed’s balance sheet to once again tick higher after slowly declining with the introduction of quantitative tightening in 2022.
Between a Rock and a Hard Place
What does this mean for the U.S. banking system, and what are the implications for depositors and the broader financial system?
On the one hand, the Fed may have had no other option than to save the banks.
“The way the world is, the government had no alternative but to back all deposits. Or we would have had the biggest goddamn bunch of bank runs you ever saw.”
-Charles Munger
The bigger problem is that it introduces new risk into the system. If market participants expect the Fed to always come to the rescue, they will likely make less prudent decisions. Beyond this, the ultra-low interest rate environment not only made banks more sensitive to interest-rate risk as rates went up, but it also lowered the cost of risk-taking.
Now, the Fed has said that they could take necessary actions to protect uninsured deposits. How quickly BTFP loans increase in the next few months will be anyone’s guess as clients from smaller banks withdraw funds and send to larger ones or invest in money market funds.
Editor’s note: Not all types of uninsured deposits are created equal. For custodian banks, retail deposits can make up a smaller portion of total deposits while operational deposits comprise a larger share. These types of deposits hold large amounts of funds for other banks for the purposes of custody or clearing and cash management, among other functions. For this reason, they are often considered more stable forms of deposits.
Real Assets
Visualizing Global Gold Production in 2023
Gold production in 2023 was led by China, Australia, and Russia, with each outputting over 300 tonnes.
Visualizing Global Gold Production in 2023
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
Over 3,000 tonnes of gold were produced globally in 2023.
In this graphic, we list the world’s leading countries in terms of gold production. These figures come from the latest USGS publication on gold statistics (published January 2024).
China, Australia, and Russia Produced the Most Gold in 2023
China was the top producer in 2023, responsible for over 12% of total global production, followed by Australia and Russia.
Country | Region | 2023E Production (tonnes) |
---|---|---|
🇨🇳 China | Asia | 370 |
🇦🇺 Australia | Oceania | 310 |
🇷🇺 Russia | Europe | 310 |
🇨🇦 Canada | North America | 200 |
🇺🇸 United States | North America | 170 |
🇰🇿 Kazakhstan | Asia | 130 |
🇲🇽 Mexico | North America | 120 |
🇮🇩 Indonesia | Asia | 110 |
🇿🇦 South Africa | Africa | 100 |
🇺🇿 Uzbekistan | Asia | 100 |
🇬🇭 Ghana | Africa | 90 |
🇵🇪 Peru | South America | 90 |
🇧🇷 Brazil | South America | 60 |
🇧🇫 Burkina Faso | Africa | 60 |
🇲🇱 Mali | Africa | 60 |
🇹🇿 Tanzania | Africa | 60 |
🌍 Rest of World | - | 700 |
Gold mines in China are primarily concentrated in eastern provinces such as Shandong, Henan, Fujian, and Liaoning. As of January 2024, China’s gold mine reserves stand at an estimated 3,000 tonnes, representing around 5% of the global total of 59,000 tonnes.
In addition to being the top producer, China emerged as the largest buyer of the yellow metal for the year. In fact, the country’s central bank alone bought 225 tonnes of gold in 2023, according the World Gold Council.
Estimated Global Gold Consumption
Most of the gold produced in 2023 was used in jewelry production, while another significant portion was sold as a store of value, such as in gold bars or coins.
- Jewelry: 46%
- Central Banks and Institutions: 23%
- Physical Bars: 16%
- Official Coins, Medals, and Imitation Coins: 9%
- Electrical and Electronics: 5%
- Other: 1%
According to Fitch Solutions, over the medium term (2023-2032), global gold mine production is expected to grow 15%, as high prices encourage investment and output.
Real Assets
Charted: The Value Gap Between the Gold Price and Gold Miners
While gold prices hit all-time highs, gold mining stocks have lagged far behind.
Gold Price vs. Gold Mining Stocks
This was originally posted on our Voronoi app. Download the app for free on Apple or Android and discover incredible data-driven charts from a variety of trusted sources.
Although the price of gold has reached new record highs in 2024, gold miners are still far from their 2011 peaks.
In this graphic, we illustrate the evolution of gold prices since 2000 compared to the NYSE Arca Gold BUGS Index (HUI), which consists of the largest and most widely held public gold production companies. The data was compiled by Incrementum AG.
Mining Stocks Lag Far Behind
In April 2024, gold reached a new record high as Federal Reserve Chair Jerome Powell signaled policymakers may delay interest rate cuts until clearer signs of declining inflation materialize.
Additionally, with elections occurring in more than 60 countries in 2024 and ongoing conflicts in Ukraine and Gaza, central banks are continuing to buy gold to strengthen their reserves, creating momentum for the metal.
Traditionally known as a hedge against inflation and a safe haven during times of political and economic uncertainty, gold has climbed over 11% so far this year.
According to Business Insider, gold miners experienced their best performance in a year in March 2024. During that month, the gold mining sector outperformed all other U.S. industries, surpassing even the performance of semiconductor stocks.
Still, physical gold has outperformed shares of gold-mining companies over the past three years by one of the largest margins in decades.
Year | Gold Price | NYSE Arca Gold BUGS Index (HUI) |
---|---|---|
2023 | $2,062.92 | $243.31 |
2022 | $1,824.32 | $229.75 |
2021 | $1,828.60 | $258.87 |
2020 | $1,895.10 | $299.64 |
2019 | $1,523.00 | $241.94 |
2018 | $1,281.65 | $160.58 |
2017 | $1,296.50 | $192.31 |
2016 | $1,151.70 | $182.31 |
2015 | $1,060.20 | $111.18 |
2014 | $1,199.25 | $164.03 |
2013 | $1,201.50 | $197.70 |
2012 | $1,664.00 | $444.22 |
2011 | $1,574.50 | $498.73 |
2010 | $1,410.25 | $573.32 |
2009 | $1,104.00 | $429.91 |
2008 | $865.00 | $302.41 |
2007 | $836.50 | $409.37 |
2006 | $635.70 | $338.24 |
2005 | $513.00 | $276.90 |
2004 | $438.00 | $215.33 |
2003 | $417.25 | $242.93 |
2002 | $342.75 | $145.12 |
2001 | $276.50 | $65.20 |
2000 | $272.65 | $40.97 |
Among the largest companies on the NYSE Arca Gold BUGS Index, Colorado-based Newmont has experienced a 24% drop in its share price over the past year. Similarly, Canadian Barrick Gold also saw a decline of 6.5% over the past 12 months.
-
Electrification3 years ago
Ranked: The Top 10 EV Battery Manufacturers
-
Electrification2 years ago
The Key Minerals in an EV Battery
-
Real Assets3 years ago
The World’s Top 10 Gold Mining Companies
-
Misc3 years ago
All the Metals We Mined in One Visualization
-
Energy Shift2 years ago
What Are the Five Major Types of Renewable Energy?
-
Electrification2 years ago
Mapped: Solar Power by Country in 2021
-
Electrification2 years ago
The World’s Largest Nickel Mining Companies
-
Electrification3 years ago
How Much Land is Needed to Power the U.S. with Solar?