Small US bank customers withdrew a record $119.9 billion in deposits in the seven days ending March 15, according to data released March 24 by the Federal Reserve.
This week’s drop in deposits at the smallest US banks was the biggest since 1973. The previous big investor flight from banks was seen in 2008, but then the amount seized was almost half. This figure is seasonally adjusted. Without seasonal adjustment, small banks lost $107.8 billion.
Most of these deposits went to the big banks. As a result, deposits at large banks increased by $66.7 billion seasonally adjusted and $119.8 billion excluding seasonal fluctuations.
Overall, according to the Federal Reserve, deposits at US commercial banks fell $98.4 billion on a seasonally adjusted basis. The seasonally adjusted drop was $52.8 billion.
Large banks are defined as the 25 largest registered commercial banks in the country, ranked by domestic assets. Thus, Silicon Valley Bank, which was ranked 18th by assets, will be considered one of the large banks that, as a whole, captured deposits. In other words, the drop in deposits among smaller banks does not include deposits that were withdrawn from Silicon Valley Bank.
Source: Rossa Primavera
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