[Cullinet]

Book value accounting only works if you have matching regulatory or matching duration capital for the original loan.

Mortgage banks drove the UK bankrupt cap in hand to the IMF in 73 with far far less of a rates delta than is happening now.

Edit : there was a similar breakdown of society as is happening already today almost everywhere , back in 73 in the UK. The main difference is that the banks managed to put much more of the pain onto the common man since then.

[HWR_14]

There is ample reason to believe that banks will be fine and the future will continue without random bank runs, SVB was an outlier.

But even if that happens, the delta between book value and market value for the banks is mostly covered by shareholder equity, so banks may fail but the system should be fine.