When you deposit your hard-earned money into a small business bank account, the last thing you want to worry about is whether the bank is healthy. It used to seem like banks were too big to fail, but the 2008 recession and 2023 bank runs that led to several banks failing or requiring bailouts showed otherwise. It can be difficult to know if a bank is likely to fail—and whether or not your deposits are protected.
And it’s a valid concern, according to the FDIC there have been 563 FDIC-insured bank failures in the United States since 2001. There are ways to determine if a bank is trustworthy, including ensuring your bank is FDIC insured. This article will discuss some factors that may indicate whether a bank is healthy and why it's important to know.