S&P Global, a ratings agency, has cut its credit ratings on five banks. It downgraded Associated Banc-Corp. and Valley National Bancorp for funding risks and reliance on brokered deposits and UMB Financial Corp., Comerica Bank and Keycorp for large deposit outflows and higher interest rates, according to a reportby CNBC.

Due to the rise in interest rates, many banks are having a harder time with funding and liquidity. The news report also mentioned the Federal Reserve is "quantitatively tightening." The agency also cut S&T Bank and River City Bank's ratings from stable to negative on high commercial real estate exposure.

Moody's cut the rating of 10 banks earlier in August and put big banks including Truist Financial, State Street and Bank of New York Mellon on review for downgrades as well.

One key reason for this cut is the collapse of Silicon Valley Bank, Signature Bank and First Republic this year due to a major deposit run. This led to many questioning the stability of the banking system and to a variety of proposed actions, including confiscating payfrom the executives of failed banks.

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