NEW YORK–The nation’s largest banks are seeing an influx of deposits following the shutdown of two banks in the last week, in part from customers who are over the FDIC deposit cap at other institutions, according to a new report.
The Financial Times reported that two of the biggest banks in the country, JPMorgan and Citibank, have been scrambling to handle the volume.
The Times report further called the moves the largest shift in deposits in more than 10 years, which would have been in the wake of the financial crisis.
Bank of America and Citigroup have also “hastened” their account-opening processes to accommodate the demand, the Times report states.
The flow of funds follows the closure of Silicon Valley Bank and Signature Bank by state and federal regulators. In the case of Silicon Valley Bank, data indicates that some 90% of deposits were in accounts that far exceeded the $250,000 per account covered by FDIC deposit insurance. While the government has indicated it will now backstop those deposits and consumers/companies will not lose funds, the situation has raised awareness among customers across the country that they are not protected.
Earlier this week CUNA’s senior economist, Mike Schenk, said approximately 8% of deposits in credit unions are in excess of the NCUSIF’s $250,000 cap.
It’s Called Fresh for a Reason. And We Offer Home Delivery. For Free!
The biggest, best and freshest news reporting in credit unions remains free in ’23! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more.
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com