More than 700 U.S. banks are facing “significant safety and solvency” risks because of large unrealized losses on their balance sheets, and these banks have reported losses of more than 50% of their capital, according to a report released by the Federal Reserve in recent days. The Fed pointed to higher interest rates as the catalyst for losses at these U.S. banks. Changes in monetary policy and rising interest rates have had a negative impact on banks' balance sheets, and the financial position of many banks has become more precarious. While the banks have been taking steps to prevent further losses over the past few months, large floating losses on banks' balance sheets have limited their ability to lend and meet obligations. In addition, higher-than-expected deposit outflows and limited emergency funding could force these banks to make difficult decisions, such as relying on more foreign exchange reserves. Therefore, Bank of America needs to take necessary measures to reduce risks and protect its own safety and solvency.