New numbers on the global banking system are shedding light on just how much money depositors have pulled out of their bank accounts in the last year.
According to the latest data from the Federal Reserve of St Louis, US banks have faced $605 billion in deposit flight in a year.
And total deposits at banks in France, Germany, Spain and Italy as well as in the Benelux and Nordic regions dropped by about $950 billion in 12 months, according to data compiled by S&P Global Market Intelligence – bringing the grand total across the aforementioned countries to $1.55 trillion in deposit flight.
As customers pull money out of their banks in search of higher returns, wealthy clients are now doing the most damage to the bottom lines of America’s banking giants, according to a new report from Yahoo Finance.
JPMorgan Chase, Wells Fargo, Bank of America and Citi all reported deposit outflows in their wealth management divisions in the second quarter of this year.
And data from Curinos shows wealth management and corporate accounts witnessed 13% in deposit exodus from the beginning of the year through July.
This summer, all four banks launched new offers for certificate of deposit (CD) savings accounts in a push to remain competitive with money-market accounts that have witnessed hundreds of billions of dollars of inflows over the last year.
Those efforts may be yielding results. According to Curinos, the institutional deposit flight from big US banks paused in July, while the data from August has yet to be released.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox