{"id":1289727,"date":"2023-05-19T13:10:39","date_gmt":"2023-05-19T17:10:39","guid":{"rendered":"https:\/\/bugaluu.com\/news\/us-deposit-outflows-accelerated-last-week-led-by-small-banks\/1289727\/"},"modified":"2023-05-19T13:10:39","modified_gmt":"2023-05-19T17:10:39","slug":"us-deposit-outflows-accelerated-last-week-led-by-small-banks","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/us-deposit-outflows-accelerated-last-week-led-by-small-banks\/1289727\/","title":{"rendered":"US Deposit Outflows Accelerated Last Week, Led By Small Banks"},"content":{"rendered":"<div class=\"ftpimagefix\" style=\"float:left\"><a target=\"_blank\" href=\"https:\/\/www.zerohedge.com\/markets\/us-deposit-outflows-accelerated-last-week-led-small-banks\" rel=\"noopener\"><img decoding=\"async\" width=\"100\" data-entity-type=\"file\" data-entity-uuid=\"51d2b5ea-c611-4787-90e3-d3088e3ee44f\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/2023-05-19_12-03-28.jpg?itok=jUFmTnmO\" alt=\"\"><\/a><\/div>\n<p><span class=\"field field--name-title field--type-string field--label-hidden\">US Deposit Outflows Accelerated Last Week, Led By Small Banks<\/span><\/p>\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>After yesterday&#8217;s <a target=\"_blank\" href=\"https:\/\/www.zerohedge.com\/markets\/fed-emergency-bank-bailout-facility-hits-record-high-money-market-inflows-suggest-deposit\" rel=\"noopener\"><strong>continuing surge on flows INTO money market funds and increase in the use of The Fed&#8217;s bank bailout facilities<\/strong><\/a>, expectations were for more deposit outflows from US commercial banks (despite Western Alliance&#8217;s comments which sparked a melt-up in regional bank shares this week.<\/p>\n<p>However, Treasury Secretary Yellen spoiled the party somewhat today by warning (reportedly) that the market should expect &#8216;more bank mergers&#8217; (i.e. failures)&#8230;<\/p>\n<\/p>\n<p>And so, according to the <a target=\"_blank\" href=\"https:\/\/www.federalreserve.gov\/releases\/h8\/\" rel=\"noopener\">latest H8 report from The Fed<\/a>, <strong>on a seasonally-adjusted basis, total US Commercial Bank deposits fell by $26.4 billion during the week ended 5\/10 &#8211; the third straight week<\/strong>&#8230;<\/p>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfm3284.jpg?itok=CdHXH04w\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfm3284.jpg?itok=CdHXH04w\" rel=\"noopener\"><\/a><\/p>\n<p><em>Source: Bloomberg<\/em><\/p>\n<p>On a <strong>seasonally adjusted basis, US commercial bank deposits (ex-large time deposits) decreased $20.8bn last week (during the week-ending 5\/10), for the fifth straight weekly outflow<\/strong>. That is the lowest since March 2021&#8230;<\/p>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfmE95C.jpg?itok=C4zL0ZVK\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfmE95C.jpg?itok=C4zL0ZVK\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-entity-type=\"file\" data-entity-uuid=\"e0f1336c-af9e-4e2f-a25e-8b244872aa7b\" data-responsive-image-style=\"inline_images\" height=\"305\" width=\"500\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfmE95C.jpg?itok=C4zL0ZVK\" alt=\"\"><\/a><\/p>\n<p><em>Source: Bloomberg<\/em><\/p>\n<p>On a <strong>non-seasonally-adjusted basis, US commercial bank deposits (ex-large time deposits) dropped $50.26 billion (after jumping $63.8 billion)<\/strong> the prior week.<\/p>\n<p>And judging by yesterday&#8217;s money market inflows, the deposit outflows continued this week (remember, deposit data is lagged a week to money market and Fed balance sheet data), despite reassurances from WAL&#8230;<\/p>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfm5CDE.jpg?itok=KE4KNMIe\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfm5CDE.jpg?itok=KE4KNMIe\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-entity-type=\"file\" data-entity-uuid=\"280acd28-f843-4d57-829c-f44812a1d9b7\" data-responsive-image-style=\"inline_images\" height=\"316\" width=\"500\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfm5CDE.jpg?itok=KE4KNMIe\" alt=\"\"><\/a><\/p>\n<p><em>Source: Bloomberg<\/em><\/p>\n<p>On a seasonally-adjusted basis, Large, Small, and Foreign banks all saw outflows last week. <strong>Small bank deposits are at their lowest since May 2021&#8230;<\/strong><\/p>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfmF142.jpg?itok=XORE_2N6\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfmF142.jpg?itok=XORE_2N6\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-entity-type=\"file\" data-entity-uuid=\"789eb0fe-09c6-4da2-956c-27006d2f5a14\" data-responsive-image-style=\"inline_images\" height=\"304\" width=\"500\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfmF142.jpg?itok=XORE_2N6\" alt=\"\"><\/a><\/p>\n<p><em>Source: Bloomberg<\/em><\/p>\n<p>This is the 5th straight week of Small Bank outflows and Small Banks saw the largest outflows&#8230;<\/p>\n<ul>\n<li>\n<p>Large Banks -$7.49 billion SA <strong>(-$36.5 billion NSA)<\/strong><\/p>\n<\/li>\n<li>\n<p><strong>Small Banks -$8.742 billion SA (-$12.5 billion NSA)<\/strong><\/p>\n<\/li>\n<li>\n<p>Foreign Banks -$4.627 billion SA (-$1.2 billion NSA)<\/p>\n<\/li>\n<\/ul>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfm1894.jpg?itok=OFPd9yN2\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfm1894.jpg?itok=OFPd9yN2\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-entity-type=\"file\" data-entity-uuid=\"257cdf19-a26d-4a7b-ac36-1748b6c0b05c\" data-responsive-image-style=\"inline_images\" height=\"334\" width=\"500\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfm1894.jpg?itok=OFPd9yN2\" alt=\"\"><\/a><\/p>\n<p><em>Source: Bloomberg<\/em><\/p>\n<p>Finally, after adjusting for all the revisions (which are now an every week occurrence), what sticks out to us is that<strong> the last 5 weeks have seen $379 billion in NSA bank outflows, while SA the number is an outflow of only $171 billion.<\/strong><\/p>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfmDC5E_0.jpg?itok=iIdSqoWa\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfmDC5E_0.jpg?itok=iIdSqoWa\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-entity-type=\"file\" data-entity-uuid=\"97061931-8f6a-4346-9e7f-85223688354d\" data-responsive-image-style=\"inline_images\" height=\"317\" width=\"500\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfmDC5E_0.jpg?itok=iIdSqoWa\" alt=\"\"><\/a><\/p>\n<p><em>Source: Bloomberg<\/em><\/p>\n<p>So the Fed is claiming there are still over $200 billion in tax-payment related deposits expected to return to banks.<\/p>\n<p>The Fed\u2019s report showed residential real estate loans declined a seasonally adjusted $2.6 billion, while lending for commercial properties rose slightly. Consumer loans also ticked up from the prior week, while commercial and industrial loans fell $3.5 billion.<\/p>\n<p>On the other side of the ledger, Commercial bank lending was little changed in the week ended May 10th, according to seasonally adjusted data. Large bank loans dropped $6.159 billion while Small Bank loans actually rose by $6.85 billion (despite significant deposit outflows)&#8230;<\/p>\n<p><a target=\"_blank\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfm596A.jpg?itok=3AmUUduQ\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfm596A.jpg?itok=3AmUUduQ\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-entity-type=\"file\" data-entity-uuid=\"aa62d6b3-a4d4-49e6-8543-73c35d42c408\" data-responsive-image-style=\"inline_images\" height=\"317\" width=\"500\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfm596A.jpg?itok=3AmUUduQ\" alt=\"\"><\/a><\/p>\n<p><em>Source: Bloomberg<\/em><\/p>\n<p>And all of this happened a week before WAL claimed its deposits are rising.<\/p>\n<\/div>\n<p>      <span class=\"field field--name-uid field--type-entity-reference field--label-hidden\"><a target=\"_blank\" title=\"View user profile.\" href=\"https:\/\/cms.zerohedge.com\/users\/tyler-durden\" lang=\"\" class=\"username\" xml:lang=\"\" rel=\"noopener\">Tyler Durden<\/a><\/span><br \/>\n<span class=\"field field--name-created field--type-created field--label-hidden\">Fri, 05\/19\/2023 &#8211; 16:43<\/span><\/p>\n<p>From:<a href=\"https:\/\/www.zerohedge.com\/markets\/us-deposit-outflows-accelerated-last-week-led-small-banks\" target=\"_blank\" title=\"US Deposit Outflows Accelerated Last Week, Led By Small Banks\" rel=\"noopener\">Zerohedge<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>US Deposit Outflows Accelerated Last Week, Led By Small Banks After yesterday&#8217;s continuing surge on flows INTO money market funds and increase in the use&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1289727","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1289727","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1289727"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1289727\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1289727"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1289727"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1289727"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}