The analysts of JPMorgan Chase & Co. They estimate that it is likely that US banks “most vulnerable” have lost a total of around $1 trillion in deposits since last year, with half of the outflows occurring in March, following the collapse of Silicon Valley Bank (SVB).
JPMorgan’s team of analysts led by Nikolaos Panigirtzoglou It did not name any of the banks it categorized as “most vulnerable” or say how many it included in this group.
“The uncertainty generated by deposit movements could make banks more cautious when granting loansthey wrote.
“This risk is compounded by the fact that small and medium-sized banks play a disproportionately large role in US bank lending,” they added in a note dated March 22.
Regulators shut down SVB and Signature Bank earlier in the month, marking the second and third largest bankruptcies in US banking history, respectively.
The speed with which customers withdrew their money from the two banks raised concerns that bank failures would spread to other institutions.which led the US authorities to support their deposits.
The bankruptcies raised the concern of customers, who rushed to move their money to larger banks, considered safer and with a higher proportion of insured deposits.
Of the trillion dollars in deposits withdrawn from America’s most vulnerable lenders, half went to government money market funds, while the other half went to larger US banks, according to analysts.
Source: Ambito
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