Loan Volumes Tumbled Last Week As Domestic US Bank Deposit Outflows Surged
With the usage of The Fed's emergency bank bailout program still above $100 billion (near record highs), money-market funds seeing a resumption in inflows, and last week's f**kery by The Fed with regard deposit inflows (SA) and outflows (NSA), it's anyone's guess what tonight's noisy deposit data means.
Seasonally-adjusted, total deposits FELL a tiny $959mm last week
Source: Bloomberg
But, Non-seasonally-adjusted, total deposits ROSE $63.3bn...
Source: Bloomberg
The SA and NSA Deposit totals converged a little this week...
Source: Bloomberg
But the divergence between money-market fund assets and deposits continues
Source: Bloomberg
Seasonally-adjusted, both large and small banks saw significant deposit outflows (-$29bn and -$9.5bn respectively) while foreign banks saw a huge $37.5bn inflow (the biggest weekly inflow since July 2021)...
Source: Bloomberg
The picture - non-seasonally-adjusted - is the exact opposite with large and small banks seeing inflows (+$44.9bn and +$7.8bn respectively) and foreign banks saw inflows of $10.6bn...
Source: Bloomberg
So, DOMESTIC BANKS saw $38.5 billion OUTFLOWS (SA) but $52.6 billion INFLOWS (NSA)...
Source: Bloomberg
On the other side of the ledger, loan volumes sank notably with both Large Banks (-$18.8bn) and Small Banks (-$2.5bn) seeing a drop in lending...
Source: Bloomberg
Finally, as a reminder, banks have around 8 months left under the original 12-month BTFP Fed bailout program to find a way to stabilize their balance sheets.
Not only have they failed to do so, usage of the BTFP facility remains near record highs, and yields are rising even more (great MTM losses).
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