Liquidity & Balance Sheet
Uninsured Deposit Ratio
Also known as Uninsured %
The Uninsured Deposit Ratio measures deposits above the $250K FDIC insurance threshold as a percentage of total deposits. Made infamous by the Silicon Valley Bank failure in 2023, it captures deposit base run-risk.
Formula
Banks have reported uninsured deposits as of each call report date since 2009 (Schedule RC-E Memo). The figure is point-in-time at quarter-end and does not capture intra-quarter dynamics.
Why it matters
Uninsured depositors have economic incentive to flee at the first sign of trouble — and after 2023, the run-risk threshold compressed dramatically. SVB's failure was triggered by uninsured depositors withdrawing $42B in a single day; before 2023 a run of that magnitude in 24 hours was considered nearly impossible. The metric now drives both supervisory attention and depositor behavior analysis.
How to interpret
Most US community banks report uninsured deposit ratios between 20% and 50%. Above 60% warrants attention — the bank is exposed to run-risk in a crisis scenario. SVB at failure reported uninsured deposits over 90% of total.
Thresholds
| Range | Label | Interpretation |
|---|---|---|
| < 30% | Low | Limited run risk. |
| 30–50% | Moderate | Typical community bank exposure. |
| 50–70% | Elevated | Meaningful run-risk exposure. |
| > 70% | High | SVB-style run-risk profile. |
Worked example
Frequently asked
Why did uninsured deposit ratio matter so much for SVB?
SVB's depositors were concentrated in startups with average balances far above $250K and access to fast information channels (group chats, VC partner notes). When concern emerged, uninsured depositors had economic incentive to withdraw and technical means to do so within minutes. The combination produced an unprecedented $42B outflow in 24 hours.
Are uninsured deposits self-reported by banks?
Banks are required to report estimated uninsured deposits each quarter using FDIC-provided methodology. The estimates have limitations — large depositors with multiple accounts at the same bank may be miscounted — but the reported figures are the supervisory standard.
Has the FDIC raised the insurance limit?
Not generally — the $250K limit set in 2008 remains. After SVB, the FDIC used systemic-risk authority to fully insure all SVB and Signature deposits, but the legislative limit hasn't changed and there's no consensus to raise it.
Sources
- FFIEC Call Report Schedule RC-O (Deposit Insurance Assessments)
- FFIEC Call Report Schedule RC-E Memo (Uninsured Deposit Estimates)
See Uninsured % across 4,394 US banks
BankRegReports ranks every FDIC-insured institution by Uninsured %, refreshed quarterly within 48 hours of FFIEC release.