(Reporting by Howard Schneider Editing by Chris Reese)
LEXINGTON, Virginia, March 27 (Reuters) - The shuffling
of deposits from small to large banks could have a
disproportionate impact on U.S. small businesses who depend
heavily on community and regional financial institutions for
credit, Federal Reserve Governor Philip Jefferson said on
Monday.
"We are focused on the macroeconomy but we are aware that
there are potential distributional aspects," if depositors move
cash away from smaller banks, Jefferson said.
Recent banking sector stress has led to declining deposits
at smaller institutions and "we are going to have to see how
that plays out," Jefferson said.
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