**US Commercial Bank Deposits & Loans Rose Last Week; Small Bank Depos Up Most In 4 Months**
US Commercial Bank Deposits & Loans Rose Last Week; Small Bank Depos Up Most In 4 Months
It's late on a Friday afternoon, but there's still more things to worry about as The Fed's H.8 (commercial bank deposit data) just dropped (https://www.federalreserve.gov/releases/h8/).
**US commercial bank deposits (ex-large time deposits) rose** _(during the week-ending 4/5)_ **\- breaking a 10-week streak of outflows**, up $37 billion - the biggest deposit inflow since early December...
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_Source: Bloomberg_
**On a non-seasonally-adjusted basis, we saw a second straight week of deposit inflows**(we had seen a surprise $54bn rise in deposits in the prior week and an additional $47.8bn last week)
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_Source: Bloomberg_
As a reminder, we noted yesterday the ongoing (but slowing) rise in inflows to money-market funds as a silver lining, suggesting overall deposit outflows may also be slowing. **Well in fact, as we noted above, they are now inflows...**
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_Source: Bloomberg_
Large, Small, and Foreign commercial banks **all saw deposit inflows** (seasonally-adjusted) last week...
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_Source: Bloomberg_
**Foreign bank inflows were the largest since July 2021..**
- Large Banks +$23.55bn
- Small Banks +13.47bn
- Foreign Banks +22.2bn
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_Source: Bloomberg_
On the other side of the ledger, **commercial bank lending increased $10.2 billion in the week ended April 5**, according to seasonally adjusted data from the Federal Reserve out Friday. On an unadjusted basis, loans and leases fell $5.6 billion.
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Large banks saw total loans and leases rise $13.2bn...
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Small banks saw a $3.12bn rise in total loans and leases...
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The Fed's 'fill the gap' exercise appears to have worked for now and is unwinding...
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Will this 'good' news breathe life back into regional banks, which just can't bounce even as big banks soared this week...
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**Is this the all-clear for The Fed to re-ignite its hawkish tone - higher for longer?**
Tyler Durden (https://cms.zerohedge.com/users/tyler-durden)Fri, 04/14/2023 - 16:40