American banks saw an increase in their customers’ deposit outflows. During a week from July 5 to July 12, $78 billion was withdrawn from the accounts of credit institutions. informs publication The Daily Hodl refers to information from the Federal Reserve System’s (FRED) Economic Data System.
It was noted that the deposit outflow followed a two-week period of relative stability as large banks deposited substantial amounts of cash with third-party intermediaries to attract new deposits.
Market participants pointed out that the banking sector must comply with interest rate hike requirements in order to prevent further outflow of deposits. At the same time, there is a certain period of calm for banks after the growth in profits across the industry in the second quarter of 2023.
In mid-June, Andre Henri, head of banking supervision at the European Central Bank declarationthat the leadership of the regulator not only supported the withdrawal of eurozone banks from the Russian market, but also put the appropriate pressure on them. The main reason for this behavior of the currency regulator is that the continued work of European credit institutions in the domestic market of the Russian Federation is associated with a “huge reputational risk” in connection with the current international sanctions against Moscow.
Previously reportedThe US has no net guarantees for the economy due to the growth in the national debt ceiling.
Source: Gazeta
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