Aerial view of a trader walking through the trading floor at the New York Stock Exchange (NYSE). Photo: Andrew Kelly/Reuters.
Banks in the United States have registered a decrease in total deposits of a record 2.5% during the first quarter of the year, according to a report from RT citing data published by the Federal Deposit Insurance Corporation (FDIC). The agency affirms that this has been the largest reduction since 1984, the date on which data began to be collected by the FDIC.
According to the report published this Thursday, June 1, US banks lost $472 billion in deposits in the first quarter of this year, marking the fourth consecutive quarter of recessions in the industry.
The decline was mainly due to uninsured funds, the FDIC said, noting that insured deposits actually increased by $255.1 billion—approximately 2.5%—amid the failures of several regional banks.
“The more lasting effects of the industry’s response to that stress may not be fully apparent until we receive second-quarter results,” FDIC Chairman Martin Gruenberg said.
The report did not cover First Republic Bank, which had collapsed on May 1, becoming the third US lender to fail this year. The FDIC also said the number of banks on its “troubled” list had increased by four to a total of 43 currently, while assets held by banks on that same list rose to $58 billion.
Translation: Orinoco Tribune
OT/AU/KZ
