Local Banks Could Leave Gaps That Are Hard to Fill

Tighter belts for smaller banks could count as a big problem for some parts of the U.S.

The failures of Silicon Valley Bank and Signature Bank as well as questions about First Republic Bank’s future have cast a sudden pall on the banking sector. An emerging concern is that customers at community and regional banks, worrying that their deposits aren’t safe, might pull their money, putting it into money-market funds or accounts at bigger banks.