MNI BRIEF: US Bank Deposits Fell USD98B Week Of SVB Collapse

Deposits at US lenders continued to slide in the week when three bank failures triggered global financial turmoil, with small banks seeing a decline and large banks an increase in deposits.

Overall bank deposits fell USD98 billion to USD17.5 trillion in the week ended March 15, according to Federal Reserve data released Friday. Deposits fell USD63 billion in the week to March 8 and have declined by USD630 billion from their peak in April last year at USD18.1 trillion. Deposits at small banks decreased USD108 billion to USD5.5 trillion, while deposits at large banks increased USD120 billion to USD10.8 trillion.

The Fed's weekly snapshot of US banks has become a key data point for markets and the economy after the collapse of Silicon Valley Bank and two other lenders. Overall bank lending rose by USD63billion to USD12.2 trillion in the week.