Why hundreds of U.S. banks may be at risk of failure

Hundreds of small and regional banks in the U.S. are experiencing stress due to commercial real estate loans and potential losses linked to higher interest rates. Around 282 banks with less than $10 billion in assets face these challenges. While the majority are not insolvent, their stress levels could lead to a dip below minimum capital requirements. Communities may be impacted as these banks choose not to invest in new branches, technology, or staff. However, for individuals, as long as their deposits are below the insured limit of $250,000 per account, the consequences are indirect.