While the US banking sector is stable, growing vulnerabilities leave at least some institutions under a near-term threat of funding pressure and capital shortfalls, according to Federal Reserve Bank of New York staff.

The risks to the system are rising, albeit modestly, and those weaknesses are still below the levels that preceded the global financial crisis, according to Matteo Crosignani, Thomas Eisenbach and economist Fulvia Fringuellotti, in a post on the Liberty Street Economics blog Monday. That’s in large part because the biggest banks are less exposed to capital shortfalls and run-on-the-bank risks, their analysis of models through the second quarter of 2023 showed.