The Federal Reserve’s aggressive interest rate hikes since last year to control inflation put immense pressure on the U.S. banking system, leading to the failure of three large regional banks earlier this year. These bank failures were the biggest since the global financial crisis of 2008.
Despite the measures taken by the financial regulators to restore stability to the banking system, investors and depositors were concerned about the strength of the financial system. However, there are signs of stabilization in the banking industry as deposit outflows are slowing down.
