Americans' faith in banks drops after failures: poll
The level of high confidence in the banking sector among adults is at 10%, down from 22% in 2020
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The recent failures in the banking sector have rattled not just investors, but American adults in general.
Only 10% of U.S. adults say they have high confidence in the nation’s banks and other financial institutions, according to a new poll.
That's down from the 22% in 2020.
The poll from The Associated Press-NORC Center for Public Affairs Research also finds that a majority say the government is not doing enough to regulate the industry.
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SVB (Silicon Valley Bank) logo is seen in this illustration taken March 19, 2023. (REUTERS/Dado Ruvic / Fox News)
This comes following a major shakeup in the financial system involving the collapse of two banks and liquidity problems at two others.
These shocks brought back memories of the 2008-2009 financial crisis.
The crisis began when Silicon Valley Bank, the nation’s 17th largest, was shut down by the FDIC as regulators moved to protect customers as it faced a liquidity crunch following a $2 billion loss.
It became the largest bank failure since the financial crisis.
Signature Bank logo displayed on a phone screen and representation of cryptocurrency are seen in this illustration photo. (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)
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Federal regulators also shut down New York-based Signature Bank to protect consumers and the financial system following the collapse of SVB.
Signature's deposits were bought by Flagstar Bank, a subsidiary of New York Community Bank.
Big U.S. banks voluntarily deposited $30 billion to stabilize First Republic Bank.
In Europe, UBS took over Credit Suisse.
Close-up of sign with logo on facade at First Republic Bank branch in San Ramon, California. (Smith Collection/Gado/Getty Images / Getty Images)
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In the United States, the tumult has raised questions among policymakers about legislation that rolled back strict regulations put in place after the financial crisis.
The poll suggests the U.S. public shares that concern.
56% say the government isn’t doing enough to regulate banks and other financial institutions.
27% say it’s doing the right amount.
15% say it’s regulating too much.
The logo of Swiss bank Credit Suisse is seen at its headquarters in Zurich, Switzerland. (Reuters/Arnd Wiegmann / Reuters Photos)
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The worry about under-regulation is bipartisan: 63% of Democrats say current bank regulation is insufficient, as do 51% of Republicans.
The poll finds that in addition to the 10% of Americans saying that they have high confidence in the nation’s banking institutions, 57% do have some confidence; 31% have hardly any.
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The poll of 1,081 adults was conducted Mar. 16-20. The margin of sampling error for all respondents is plus or minus 4.0 percentage points.
The Associated Press contributed to this report.