You deposits in banks small of USA dramatically declined after the collapse of the Silicon Valley Bank on March 10, showed data released Friday by the Federal Reserve, marking the biggest weekly drop since 2007.
Small bank deposits fell to $5.46 trillion in the week ended March 15 from $5.58 trillion the week before, in the biggest weekly decline in value and biggest decline as a percentage of total deposits since the week ends on March 16, 2007.
Lending at small banks, defined as all those not among the top 25 commercial banks in the US, increased by $253 billion over the same period to a record $669.6 billion, weekly Fed data showed.
“As a result, small banks had an additional $97 billion in cash on hand at the end of the week, suggesting that some of the loans were to build up reserves as a preventative measure in case depositors ransom their money,” the analyst wrote. of Capital Economics, Paul Ashworth.
Deposits at major US banks rose for the week to $10.74 trillion from $10.67 trillion in the week ending March 8, the data showed.
Source: Moneytimes
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