U.S. Banks Face Nearly $400 Billion in Unrealized Losses on Securities

Recent data from the Federal Deposit Insurance Corporation (FDIC) reveals that the U.S. banking system is experiencing nearly $400 billion in unrealized losses on investment securities. According to PANews, these losses have been attributed to the rapid rise in interest rates since 2022. The data indicates that both held-to-maturity (HTM) and available-for-sale (AFS) securities have incurred significant paper losses. Although these losses have slightly decreased from their peak, they remain at a high level.