US Bank Deposits and Lending Both Dropped Last Week Amid Turmoil
- Deposits fell nearly $126 billion, while bank loans retreated
- Decrease in overall lending was largest since June 2021
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Deposits at US banks fell sharply and lending declined by the most in nearly two years amid financial turmoil triggered by the collapse of several banks this month.
Commercial bank deposits dropped by $125.7 billion in the week ended March 22, marking the ninth-straight period of declines, according to data released Friday by the Federal Reserve. At domestically chartered banks, deposits fell $84 billion, reflecting a decrease at the 25 largest institutions dropped. Deposits at small banks increased.