US banks have regained all deposits lost following the collapse of Silicon Valley Bank, but they still face challenges. The total amount of deposits held by US banks has reached $17.56 trillion, surpassing pre-SVB levels for the first time since the seizure of the California regional lender in 2023. Despite the recovery, banks still need to recover deposits lost in 2022 due to interest rate cuts by the Federal Reserve.
Banks have now regained all deposits they lost following the collapse of Silicon Valley Bank . But that doesn't solve many of the problems still faced by regional lenders.
"We're in a good place with deposits, particularly as we lap last year’s turmoil," said Scott Siefers, a Piper Sandler bank analyst. That’s because mid-sized banks rely heavily on the spread they earn between loans and deposits, while bigger national institutions like JPMorgan Chase and just a fraction of what the industry pays customers with interest-bearing savings accounts, according to data compiled by Apollo.
US Banks Deposits Silicon Valley Bank Collapse Recovery Challenges Federal Reserve Interest Rate Cuts
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