Interest-rate increases by global central banks to contain the biggest inflation outbreak in four decades generated strains for banks in the United States and Europe this year. Rate hikes are generally positive for lenders if they can collect more on lending than they pay depositors, but this time was different. Some banks lost money on bond holdings—even from safe US Treasuries. This rattled some customers, who quickly made withdrawals, amplified by technology and social media. A number of banks failed. Our Financial Sector Assessment Program is a crucial pillar of our surveillance that closely tracks financial ... (full story)