Big bank deposits rise as small banks see outflows
Federal Reserve data show hard proof of what we've watched play out over the last few weeks: Money is flowing out of small banks and into larger ones.
Why it matters: The SVB collapse and its spread have sparked a broad push to move deposits around, not just to multiple institutions but to bigger and presumably safer ones.
Details: Small banks lost $108 billion in deposits in the week following Silicon Valley Bank's collapse, data from the Federal Reserve show.
- Deposits to the nation's 25 largest banks grew by $120 billion, the data show. That group includes JPMorgan, Bank of America, Citigroup, Morgan Stanley, and Goldman Sachs.
Meanwhile, people have been moving money into money market mutual funds.
The big picture: Investors and companies alike have been rethinking their financial strategy following SVB's failure. That has presented an opportunity for fast-moving fintechs that specialize in banking, payments, and treasury management — though big banks look to be even greater beneficiaries.