U.S. bank deposits fell to their lowest level in almost two years in late April, data released by the Federal Reserve on Friday showed. Overall credit provided by banks increased, while a record level of outstanding loans was reached.
Deposits at large U.S. banks declined to $10.54 trillion from $10.61 a week earlier on a nonseasonally adjusted basis. Deposits at small banks fell to $5.32 trillion from $5.34 trillion the previous week.
Overall, deposits stood at about $17.1 trillion for the week ended April 26. A decline of about $120 billion from the previous week, this is the largest drop since June 2021. Deposits have fallen by $500 billion since the collapse of Silicon Valley Bank in March.
Total banking system credit rose for a second week, reaching $17.37 trillion on a nonseasonally adjusted basis. This was largely driven by a rise in loans and leases to a record $12.11 trillion.