Soaking Up Deposits
Data released by the Federal Reserve on Friday shows that large banks have seen deposits swell by $66.7 billion from March 8th through 15th
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Soaking It Up
An interesting factoid that the Federal Reserve shared1 last night. From March 8th to March 15th, small domestic banks within the United States shed ~$120 billion in deposits across the country. Foreign-related banks also shed ~$45 billion and collectively the banking sector lost more than $98 billion in deposits.
As for where this money is going, there have been reports of substantial inflows to money market funds2, treasuries, and other alternatives this year so I suspect that is part of the puzzle. But to be candid, I don’t really know. Some of it is flowing through to the larger banks.