At most banks, roughly half of all deposits are uninsured. Silicon Valley Bank was not most banks.
At the end of the fourth quarter, a whopping 93.9% of its domestic deposits were uninsured, per an
from S&P Global. Signature Bank, which also failed last week, had a similarly-high 89.7% ratio of uninsured deposits.Conversely, a bank where the deposits are overwhelmingly uninsured is one where they are all likely to flee somewhere safer at the first sign of trouble — especially if they come from an industry like venture capital that is known for its herd mentality.Not all deposits are equal, from a bank's point of view. Insured deposits are incredibly sticky.
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