US Bank deposits have stabilized, according to an anonymous Swiss central bank official commenting on UBS’ acquisition of troubled Credit Suisse, Reuters reported.
Outflows from smaller and mid-size banks to larger ones in the wake of the Silicon Valley Bank failure have slowed, ceased and in certain cases reversed, according to the source. He added that Credit Suisse’s financial issues were separate from the recent deposit runs on U.S. banks.
Commenting on U.S. banks, U.S. Deputy Treasury Secretary Wally Adeyamo stated, "We’ve seen that over the course of the work week, deposit flows have stabilized in regional and small banks and in some cases, have modestly reversed," during an interview with CNBC.
Systemic protection guarantees given to uninsured depositors in Silicon Valley, Signature Bank and new Federal Reserve facilities which enable banks to access liquidity may have helped to even out bank deposits, Adeyemo told Reuters.