Indeed. If the banks can hold the bonds to maturity then they get par value back. It's a temporary paper loss but not a problem unless other things start to g

Indeed. If the banks can hold the bonds to maturity then they get par value back. It's a temporary paper loss but not a problem unless other things start to go awry and they are forced to liquidate as per SVB. There aren't many assets like that. If the value of a property or an equity goes down, all you can do is hope that it goes back up. With bonds you just have to wait, and indeed every day that passes the value will converge back to par.