Federal Reserve data released on Friday showed deposits at all commercial banks rose to $17.43 trillion in the week ended April 5, on a non-seasonally adjusted basis, from $17.35 trillion a week earlier.
The increase was about evenly shared between the largest 25 banks and the small and mid-sized banks. That left deposits at the largest banks above the levels prior to the collapse of Silicon Valley Bank and Signature Bank, but at small banks still short of their previous levels.
Small banks were particularly hard hit by deposit outflows after the back-to-back failures, with some depositors shifting cash to larger institutions on worries that accounts with balances exceeding the $250,000 federal insurance limit might be at risk.
Coming after more than a year of sharp interest rate
increases by the Fed aiming at slowing the economy and cooling
inflation, last month's banking turmoil appeared likely to set
up for even tighter credit conditions than what was already
being delivered by the Fed's rate hikes.
A drop in deposits can leave banks with diminished
capacity for loans, though as yet the Fed's data did not show
much impact.
Loans and leases at all banks ticked down to $12.06 trillion
from $12.07 trillion a week earlier, the data showed.
(Reporting by Ann Saphir
Editing by Chris Reese and Diane Craft)
