In the US, the outflow of deposits from small banks slowed down

In the United States, the flow of retail deposits from small regional banks to large federal-scale banks slowed down, the channel reports. CNBC. The flight of depositors from small banks that are not among the systemically important banks in the United States became massive after bankruptcy in early March, Silicon Valley Bank (SVB), where about 95% of deposits were not covered by federal insurance.

Even then, many experts said that the main danger of this bankruptcy is a crisis of confidence of depositors in banks, where deposits are not subject to state insurance. Influential billionaire investor Bill Ackman declared then that the US government “has 48 hours to take action”, otherwise the situation could become irreversible. “By allowing SVB to go bankrupt without protecting all of its deposits, the authorities made it clear to everyone what an uninsured deposit is – an unsecured illiquid obligation of a bankrupt bank,” the investor said.

According to unnamed CNBC banking sources, the outflow of deposits began to slow after March 16, when 11 of the largest US banks Deal to provide First Republic with $30 billion. First Republic, which specializes in mortgage lending, was among the American banks experiencing serious financial problems. Rumors about the problems of the bank appeared along with the news about the bankruptcy of SVB.

Some experts agree that the outflow of deposits from regional banks has slowed, but warn that many depositors are still nervous. “Now the general situation has obviously calmed down,” Enrique Dubugras, co-founder of the Brex investment company, quotes the TV channel. “Recently there have been many withdrawals and transfers (deposits.— “b”), which is why many people still choose to carry their money in larger banks.”

Evgeniy Khvostik