The Federal Deposit Insurance Corporation reported stable US bank profits and deposits in Q2, indicating a decrease in sector volatility.

However, regulators are still monitoring unrealized losses.

The sector experienced a 11.3% drop in profits due to the failure of Silicon Valley Bank and two other significant lenders.

Deposits fell for the fifth consecutive quarter, but only 0.5%.

The FDIC reported an 8.3% increase in unrealized securities losses to $558.4 billion in Q2.

The banking industry faces pressures from inflation, rising interest rates, and geopolitical uncertainty.