Kevin O’Leary of Shark Tank claims that due to the financial industry’s decline in trust, the US banking industry is about to undergo a period of significant decrease.
The venture capitalist claims that in the upcoming years, the total amount of regional banks in the US will probably decrease by half.
In America, there are 4,100 regional banks. It will most likely drop to 2,000 during the next 3 years. They’ll combine forces.
People are hesitant to deposit money in a bank since, as of right now, there is only a $250,000 guarantee if a different bank fails and you deposit money in it.
O’Leary’s estimate comes as fresh data reveals that depositors have withdrawn funds from the US banking sector for 5 straight quarters.
As stated by Martin Gruenberg, chairman of the Federal Deposit Insurance Corporation (FDIC), total deposits decreased by $100 billion from the end of Q1 to the end of Q2, going from $18.7 trillion to $18.6 trillion.