A businessman holds a clear piggy bank full of coins. Various industries face higher fees for banking and card processing due to their involvement in legal grey areas or an increased risk of fraud and chargebacks. Photo: alphaspirit.it/Shutterstock

It is difficult to predict if there will be continued fallout from the Silicon Valley Bank (SVB), First Republic and Credit Suisse debacles and what that might look like. There isn’t even certainty on whether their collapse was a result of ‘‘internet bullying’’ or if the situation is a “canary in the coal mine” that heralds troubling times for all banks, and subsequently, all customers.

For insurance companies, this could mean having to pay much higher rates for banking services that up until now were virtually free of charge as banks raise prices and tighten regulations. Naturally, this is far more of an issue for companies that banks deem to be “high risk.” Such businesses are well aware that they will be the first to bear the brunt, which will take the form of higher fees and myriad restrictions if banks find themselves in difficulty.


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