The number of U.S. banks facing financial challenges has increased, with 68 institutions listed on the FDIC's "Problem Bank List" as of the third quarter of 2023.

These banks are rated 4 or 5 on the CAMELS rating system, indicating serious financial weaknesses or critical deficiencies.

The total assets held by these problem banks have risen to $87.3 billion.

However, this represents 1.5 percent of all U.S. banks, which is within the typical range during non-crisis periods.

U.S. banks are also dealing with unrealized losses of $364 billion, primarily from exposure to the real estate and Treasury markets.

While this is a decline from the previous quarter, there is a potential for unrealized losses closer to half a trillion dollars.

The banking industry faces ongoing risks from inflation, market interest rate fluctuations, and geopolitical uncertainties.

The FDIC is closely monitoring these risks and remains vigilant in assessing the health of banks.

The future trajectory of U.S. banks will depend on the interplay of economic factors and regulatory oversight.