The coronavirus crisis continues to make its mark on the financial sector. It was a matter of time until the first bank failed because of it, which has now happened in West Virginia.
Most people seem to ignore how the global financial system has been broken for many years now.
First Bank to Fail During the Coronavirus Crisis
The 2008 banking crisis was only a warning shot.
Rather than stepping up their game, financial powerhouses have let things be as they were and hoped everything would be alright.
This year, it has become painfully apparent that that will not be the case.
Various measures taken by central banks will only put a bigger strain on domestic economies.
In the US, the first small bank has now failed due to the coronavirus.
That “honor” is granted to the First State Bank of Barboursville
Yesterday, the West Virginia Division of Financial Institutions officially closed the bank.
This institution had $152 million in total assets.
Thankfully, the deposits – worth nearly $140 million – will be taken over by MVB Bank Inc in Fairmont.
All four branches of The First State Bank will be rebranded to MVB Bank today.
It is the first time a financial institution collapses during the coronavirus crisis.
Depending on how the pandemic evolves, a lot more banks may follow suit.