According to some commentators, the US banking crises is over, or at least can be easily managed by the Federal Reserve System.
However, the banking crisis is likely in its early stages. What has started as the collapse of regional banks is likely to spread to national banks. The key reason for that is the decline in the pool of savings and continuation of fractional reserve lending in which banks are legally permitted to use money placed with them in demand deposits in lending activities. Banks treat deposits as though they were loaned to them.
The Fed chairman has vouched for the health of the US banking sector.
The banking crisis is likely in its early stages.
As the number of banks rises and the number of clients per bank declines, the chances that clients will spend money from individuals banking with other banks increases.
Current banking crisis is in response to the previous loose monetary policies.
The present framework of fractional reserve lending and central banking creates instability in the banking system.
It is not possible to stabilize the current banking system outside of creating a true free market in banking.
https://mises.org/wire/us-banking-crisis-over-it-has-barely-begun
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