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Large Bank Loan Volumes Shrank Last Week As Deposit Inflows Surged

Retail money-market funds continue to see inflows and banks' usage of The Fed's emergency bailout mechanism pushed back near record highs again last week. But, as we have noted previously, tonight's bank deposits data is anyone's guess given The Fed's fuckery.

Seasonally-adjusted, total deposits rose by a significant $24.875 billion last week (the 4th straight week on SA inflows)...

Source: Bloomberg

And, for a nice change, non-seasonally-adjusted total deposits also rose (+$90bn)...

Source: Bloomberg

Which means the divergence between money-market fund assets and deposits continues to grow...

Source: Bloomberg

Seasonally-adjusted both large- and small-banks saw deposits inflows (+$27.5bn and +$11.6bn respectively), while foreign banks saw $14.3bn in deposit outflows...

Source: Bloomberg

And in a further surprise, the picture stayed the same for non-seasonally-adjusted flows...

Source: Bloomberg

So, Domestically, banks saw deposit inflow (on both SA and NSA basis), with a large $104.5 billion inflow NSA...

Source: Bloomberg

On the other side of the ledger, the picture was more mixed with Small banks seeing loan volumes increase by $3.4bn while Large banks saw loan volumes shrink by $7.8bn. That is the second straight week of large bank loan volumes shrinking...

Source: Bloomberg

Will the 'smaller' banks be able to relieve themselves of the $100-billion-plus of BTFP Fed-bailout program borrowing within the next 8 months?

Tyler Durden Fri, 07/14/2023 - 16:40
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