Top US Banks to Reveal $521 Billion Deposit Drop
TEHRAN (Tasnim) – Banking analysts estimate that three major US banks namely JPMorgan, Citi, and Wells Fargo have lost $521 billion of their deposits over the past week under the harshest economic recession in the recent decade.
The largest US banks have likely witnessed over half a trillion dollars in deposit outflow from a year earlier as customers hurried to withdraw their savings following a severe banking crisis at several regional lenders, Bloomberg reported on Wednesday.
Concerns are increasing about the health of banking sector ahead of the deposit data that will be unveiled when major US banks report first-quarter earnings.
Accordingly, JPMorgan, Citi, and Wells Fargo are scheduled to start publishing their seasonal earnings on Friday.
Banking analysts estimate that JPMorgan, Wells Fargo, and Bank of America have lost $521 billion in deposits over the past year in the sharpest slump in a decade.
In early March, a widespread rush for withdrawing deposits caused two American lenders i.e. Silicon Valley and Signature Bank to go on bankruptcy within days.
The US third Bank i.e. First Republic finally received $30 billion as aid from top US banks of Wall Street Journal within the framework of the deposit.
The banking deposits in the United States have decreased since the beginning of the previous year amidst the skyrocketing inflation rate, so depositors have been encouraged to follow more profit than the profit of deposits and withdraw their capital.