Sunday, June 4, 2023

Deposits in US banks fell by almost $1 trillion

In the span of a year, almost a trillion dollars have been withdrawn from American bank accounts. At exactly the same time as the collapse of several financial institutions in that country has been reported, leading to a banking crisis in the North American country.

This is shown by official data from the Federal Reserve System available on the web. They show that deposits in American banks In a matter of 12 months they have fallen 4.70%.

This figure represents more than $910 billion that was not introduced into the US banking system. In view of this, in early May 2022, Deposits reached an average of USD 18 billion, And a year later, this figure dropped to 17.150 million US dollars.

The decrease is even more remarkable if one takes into account that in the past three weeks, At least USD 13 million has flown out of the US banking system, Deposits reached US$ 17,163 million at the end of April this year.

Four US banks collapsed in half a year

The decline in bank deposits at US institutions coincides with the sector’s crisis Practically since the beginning of 2023.

As reported by Cryptonoticious, At least four US banks have closed since February this year, Three of them, with a notable connection to the Bitcoin (BTC) ecosystem and cryptocurrencies.

Silvergate Bank, Silicon Valley Bank, Signature Bank and First Republic Bank have been American financial companies Which have closed their operations in less than six months. They include the collapse of Credit Suisse, one of the longest running financial services companies in the world, which is based in Switzerland.

Apart from this, shares of other US banks have also declined in the Wall Street stock market. have fallen enough, Earlier this month, shares of PacWest Bancorp, Metropolitan Bank and Western Alliance Bancorporation were down more than 20% each, as reported by CriptoNoticias.

The outflow of money from the US banking system may suggest that dollars being invested in other assets (like bitcoin or gold, for example), or that they can resort to custody of paper money.

Furthermore, it shows Faith in the financial system is being lost more and more. As a recent poll by the Gallup consultancy indicated, nearly half of Americans already fear for their money stashed in banks.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news


Please enter your comment!
Please enter your name here