Small US Banks Lose $109 Billion in Deposits in a Single Week
- Decline is the first annual drop for smaller banks since 1986
- Biggest 25 banks register a gain in deposits of $120 billion
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Bank customers shifted their deposits to large US firms from smaller ones amid a banking crisis that led regulators to seize two regional lenders in quick succession.
Weekly data collected by the Federal Reserve showed that large banks gained $120 billion in deposits while their smaller counterparts lost $109 billion, Moody’s Corp. said in a research report, citing figures released Friday. Small banks’ total deposits fell 1.5% in the week through March 15 from a year earlier, the first annual decline since 1986.