US Banks Hold Rp5,161 Trillion in Unrealized Losses, “Problem Banks” Rise!

Jakarta, Pintu News – The US banking industry is under the spotlight again after the FDIC reported large unrealized losses on bank securities portfolios. Although the value fell compared to the previous quarter, the indicator of “problem banks” actually increased, while the industry’s annual profit broke a record. This contrast is important to understand because stress in the bank sector often affects investors’ risk appetite, including for crypto assets and cryptocurrencies.

1. Unrealized Losses US$306.1 Billion: Still High Despite the Decline

The FDIC reported unrealized losses on US banks’ securities of US$306.1 billion, or approximately IDR5,161,152,100,000,000 (exchange rate 1 USD = IDR16,861). Unrealized losses are the difference between the purchase price of a security and its current market value, which has not yet “become real” because the asset has not yet been sold. This means that this figure could remain a risk if the bank needs liquidity and is forced to sell the securities at a lower price.

The decline was recorded at US$31 billion (around Rp522,691,000,000,000) or 9.2% compared to the previous quarter. The FDIC considers this decline as the lowest level since the first quarter of 2022, but the amount is still large enough to remain a concern. In practice, unrealized losses are usually most sensitive to interest rate movements because bond prices tend to fall when yields rise.

Also Read: 5 Important Things About Gold Bullion, the Most Solid Safe Haven Instrument Other Than Crypto!

2. Why “Unrealized” Losses Can Still Be Harmful?

Accounting-wise, unrealized losses do not necessarily directly erode profits if banks do not sell their assets. However, the risk arises when funding pressures, such as deposit outflows, require banks to offload securities for cash. At this point, losses that were previously “on paper” can turn into realized losses and pressure capital.

In terms of system stability, a spreading liquidity squeeze could make the market reassess the health of banks. In such a phase, investors tend to reduce risky assets and shift to instruments perceived as safer, which can have an impact on volatility in the cryptocurrency market. As such, US bank data readings often provide additional context for understanding global risk-on/risk-off dynamics.

3. “Problem Banks” Rises to 60: What Does It Mean for You?

The FDIC added three banks to its problem bank list in the fourth quarter of 2025, bringing the total to 60 banks. This equates to about 1.4% of all banks in the US and is still within the “normal” range for non-crisis periods, which is about 1%-2%. However, the increase is still a signal that the pressure has not fully eased.

Banks on the problem list generally have a low supervisory rating (often associated with the CAMELS assessment). Indications may include weaknesses in capitalization, asset quality, management, profitability, liquidity, or sensitivity to market risk. For those of you who monitor the market, such indicators are more accurately read as “yellow lights” rather than automatic crisis alarms.

4. No Bank Failures in Q4 2025, but Supervision Remains Relevant

The FDIC recorded no bank failures in the fourth quarter of 2025 and only one new bank opening. This signals that, operationally, the system is still under control despite the pressure on securities valuations. However, quarterly stability does not erase structural risks that could arise when interest rates stay high or funding costs rise.

In a policy context, supervision and risk management are crucial as liquidity shocks tend to emerge quickly. Markets typically do not wait until losses are fully realized to react, so transparency and risk mitigation often influence sentiment. The impact can extend to various asset classes, including crypto and cryptocurrencies, through changes in risk expectations.

5. US Bank Industry Profits Record US$295.6 Billion: How Come?

Amid the pressure of unrealized losses, the FDIC reported that the US banking industry’s profit in 2025 reached US$295.6 billion, or around Rp4,984,111,600,000,000, an increase of around 10.2% compared to 2024. This profit performance was driven by net interest income and non-interest income which was able to offset the increase in non-interest expenses. Simply put, many banks are still making money from their core business, despite the depressed market value of their securities.

The contrast between record profits and high unrealized losses shows two realities running together. Strong profitability can be a cushion, but it does not necessarily eliminate risk in the event of a sudden funding squeeze. For novice investors, the important point is to understand that “big profits” does not automatically mean “zero risk,” especially when bond markets and interest rates are still dynamic.

Also Read: 5 Advantages of Pegadaian Gold Deposit

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash beforeinvesting. All activities of buying and selling Bitcoin (BTC) and other crypto asset investments are the responsibility of the reader.

Reference

• Daily Hodl Staff. US Banks Report $306,100,000,000 in Unrealized Losses as Number of Lenders on ‘Problem Banks’ List Jumps. Accessed March 3, 2026.