US bank deposits are a third higher than they were at the start of 2020, which makes worries about a banking system liquidity crisis seem a little overwrought (though, to be fair, it is changes in liquidity, not absolute liquidity levels, that matter most to markets)...
So there was a one-time outflow of about $185bn, or about 3 per cent of small banks' deposits. The next week, however, small bank deposits were stable. With the usual qualifiers — things can always go wrong later, and so on — US banks do not seem to have a deposit outflow problem.
Here is more from the FT.
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