Deposits at U.S. commercial banks rose near the end of March for the first time in about a month, showing signs of stabilizing after the two largest bank failures since the financial crisis rocked the banking system and rattled depositors.
Federal Reserve data released on Friday showed deposits at all commercial banks rose to $17.35 trillion in the week ended March 29, on a nonseasonally adjusted basis, from a downwardly revised $17.31 trillion a week earlier.
Deposits rose at both the largest 25 banks by assets and at small and mid-sized banks as well. Small banks had been particularly hard hit by deposit outflows after the back-to-back failures, with some depositors shifting cash to larger institutions on concern that any funds in excess of the $250,000 per depositor federal insurance limit might be at risk.
Economists and policymakers are watching the Fed's weekly snapshot of the financial condition of the country's banks closely for signs deposit flight has run its course. They are watching just as closely for indications that lenders might start to rein in credit as a result, an action that could accelerate the onset of a economic slowdown or make it worse.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank deposits rise for first time since collapse of Silicon Valley BankDeposits at U.S. banks rose slightly in the last week of March in another sign the financial system has stabilized, but lending to businesses declined.
Read more »
The U.S. must regulate banks in the same way it oversees nuclear powerLike water and electricity, bank deposits are and should be guarded by the government.
Read more »
'People shouldn't have to become financial analysts to buy a CD.' We need to be able to trust banks with our money.OPINION: The banking system is the plumbing of our economy. Like water and electricity, bank deposits are and should be guarded by the government.
Read more »
US adds 236,000 jobs in March despite Fed's rate hikesThe latest signs increasingly suggest that an economic slowdown may be upon us.
Read more »
US Adds a Healthy 236,000 Jobs in March Despite Fed’s Rate HikesAmerica’s employers added a solid 236,000 jobs in March, suggesting that the economy remains on solid footing despite the nine interest rate hikes the Federal Reserve has imposed over the past year in its drive to tame inflation.
Read more »
Schwab notched big haul for client assets during March bank chaosSchwab says it raked in $53 billion in client assets in March as it looks to soothe investors rattled by banking turmoil
Read more »