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$100 billion withdrawn from banks, system called ‘sound and resilient’

A branch of First Citizens Bank in Dunwoody, Georgia on Thursday, March 23, 2023.

Elijah Nouvellage | Bloomberg | Bloomberg | Getty Images

Regulators have once again assured the public that the banking system is secure as the latest data showed customers withdrew nearly $100 billion in deposits recently.

Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, and a dozen other senior officials called a special closed-door meeting of the Financial Stability Oversight Council on Friday.

A readout from the session showed a New York Fed staff member briefing the group on “market trends.”

“The Board discussed the current state of the banking sector and noted the health and resilience of the U.S. banking system, although some financial institutions are under stress,” the statement said. “The board also discussed ongoing efforts at member institutions to monitor financial developments.”

No other details were provided at the meeting.

The readout, issued shortly after the market closed on Friday, read: New Fed Data Bank customers indicated they had withdrawn a total of $98.4 billion from their accounts in the week ending March 15.

It would have covered a period of time when it was sudden. Failure of Silicon Valley Bank and Signature Bank It shook the industry.

According to data, most of the funds came from smaller banks. Deposits at large institutions increased him by $67 billion, while at smaller banks he lost $120 billion.

Withdrawals reduced total deposits to just over $17.5 trillion, accounting for about 0.6% of total deposits. Deposits have fallen steadily over the past year or so, down $582.4 billion since February 2022, according to Fed data released on Friday.

Assets in money market mutual funds have increased by $203 billion in the past two weeks to reach $3.27 trillion, according to data through March 22 from the Investment Company Institute.

Earlier this week, Powell also tried to assure the public that the banking system is secure.

“You know we have the tools to protect depositors and we stand ready to use them if there is a threat of serious harm to the economy or the financial system,” Powell said. said at a press conference on Wednesday.Federal Reserve Decision Benchmark interest rate hike Another quarter percentage point. “And I think depositors should assume their deposits are safe.”

Powell said deposit flows “stabilized over the past week” after what the Fed called “strong actions” to boost the system.

Banks are flocking to the SVB and the emergency lending agency set up after the signing failure. Data released Thursday showed financial institutions were drawing an average of $116.1 billion a day from central bank discount windows, the highest since the financial crisis, and $53.7 billion from bank term funding programs. is borrowed.

Summarize this content to 100 words A branch of First Citizens Bank in Dunwoody, Georgia on Thursday, March 23, 2023.Elijah Nouvellage | Bloomberg | Bloomberg | Getty ImagesRegulators have once again assured the public that the banking system is secure as the latest data showed customers withdrew nearly $100 billion in deposits recently.Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, and a dozen other senior officials called a special closed-door meeting of the Financial Stability Oversight Council on Friday.A readout from the session showed a New York Fed staff member briefing the group on “market trends.””The Board discussed the current state of the banking sector and noted the health and resilience of the U.S. banking system, although some financial institutions are under stress,” the statement said. “The board also discussed ongoing efforts at member institutions to monitor financial developments.”No other details were provided at the meeting.The readout, issued shortly after the market closed on Friday, read: New Fed Data Bank customers indicated they had withdrawn a total of $98.4 billion from their accounts in the week ending March 15.It would have covered a period of time when it was sudden. Failure of Silicon Valley Bank and Signature Bank It shook the industry.According to data, most of the funds came from smaller banks. Deposits at large institutions increased him by $67 billion, while at smaller banks he lost $120 billion.Withdrawals reduced total deposits to just over $17.5 trillion, accounting for about 0.6% of total deposits. Deposits have fallen steadily over the past year or so, down $582.4 billion since February 2022, according to Fed data released on Friday.Assets in money market mutual funds have increased by $203 billion in the past two weeks to reach $3.27 trillion, according to data through March 22 from the Investment Company Institute.Earlier this week, Powell also tried to assure the public that the banking system is secure.”You know we have the tools to protect depositors and we stand ready to use them if there is a threat of serious harm to the economy or the financial system,” Powell said. said at a press conference on Wednesday.Federal Reserve Decision Benchmark interest rate hike Another quarter percentage point. “And I think depositors should assume their deposits are safe.”Powell said deposit flows “stabilized over the past week” after what the Fed called “strong actions” to boost the system.Banks are flocking to the SVB and the emergency lending agency set up after the signing failure. Data released Thursday showed financial institutions were drawing an average of $116.1 billion a day from central bank discount windows, the highest since the financial crisis, and $53.7 billion from bank term funding programs. is borrowed.
https://www.cnbc.com/2023/03/24/100-billion-pulled-from-banks-but-system-called-sound-and-resilient.html $100 billion withdrawn from banks, system called ‘sound and resilient’

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