empty
 
 
US banks see outflow of nearly $100 billion in deposits
31-03-2023 13:52
US banks see outflow of nearly $100 billion in deposits
US banks see outflow of nearly $100 billion in deposits

CNBC reported that US banks’ customers pulled nearly $100 billion in deposits a few days after the collapse of Silicon Valley Bank. Despite the ongoing turmoil in the US banking sector, regulators assure the public that the banking system is safe. Fresh US Fed data showed that bank customers collectively withdrew $98.4 billion from their accounts after the SVB crash. The withdrawals were made from small banks and represented about 0.6%. Total deposits were brought down to $17.5 trillion. Meanwhile, the US banking sector has been crippling since mid-March. Earlier, California state regulators banned the operation of SVB, one of the top 20 largest commercial banks in the US. Economists assume that this was the largest bankruptcy among US banks after the global financial crisis of 2008. As a result, all insured deposits were transferred to Deposit Insurance National Bank of Santa Clara. In addition, the US authorities shut down large New York-based Signature Bank and cryptocurrency bank Silvergate, fearing a systemic risk of the financial sector. Analysts estimate that the US government will have to pour nearly $2 trillion into the financial system to save the banking sector. Besides, another 50 financial institutions are at risk of bankruptcy. Earlier, American economists noted in Social Science Research Network that uninsured clients can withdraw funds from banks en masse amid the panic. Thus, 186 credit institutions are highly likely to face problems, experiencing a shortage of assets.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS
Can't speak right now?
Ask your question in the chat.
Widget callback