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What Securities Do FDIC-Insured Banks Hold? A Closer Look
FDIC-insured banks hold a significant amount of mortgage-backed securities in their portfolios, making up more than half of their total assets.
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Groundwork Researcher
FDIC-insured banks hold a significant amount of mortgage-backed securities in their portfolios, making up more than half of their total assets. However, the mix of securities has changed over time, with a decrease in mortgage-backed securities and an increase in US Treasury and state and municipal securities.
FDIC-insured banks hold a significant amount of mortgage-backed securities in their portfolios, making up more than half of their total assets.
FDIC-insured banks hold a variety of securities, including mortgage-backed securities, U.S. Treasury securities, state and municipal securities, and equity securities.
Mortgage-backed securities make up 60.7% of the total assets held by FDIC-insured banks.
Trading securities are intended to generate short-term financial gains and typically make up a small share of a bank's total assets. Investment securities, on the other hand, make up the larger share of a bank's total assets and typically have longer holding periods.
At the time of this writing, 39.8% of all investment assets are held to maturity.
The changing mix of securities held by FDIC-insured banks reflects their evolving risk preferences and regulatory environment. As banks become more risk-averse, they are holding onto securities for longer periods, which can have implications for their investment returns and capital requirements.