Daily Management Review

U.S. bank deposits decline for the year, first time in history


The overall volume of deposits in the U.S. banking sector decreased in annualized terms for the first time from 1994, since S&P Global Market Intelligence started performing such estimates.

Deposits stood at $17.269 trillion as of June 30, a 4.8% decrease from the same period last year, according to the agency's data. The figures used in S&P's computations were received from the Federal Deposit Insurance Corporation (FDIC)'s yearly survey.
According to the agency, one of the causes of this was the significant outflow of funds from accounts following the failure of three big banks this spring.

The majority of significant U.S. financial institutions reported declining deposit balances, with the "Big Four" banks—JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co., and Citigroup Inc.—accounting for over 30% of the $872 billion industry-wide decline.

source: cnbc.com