How Are Deposits At The Largest U.S. Banks Trending?
Total deposits for the five largest U.S. banks have seen a notable improvement over the last two quarters. While deposits for most of the banks have largely grown over the last five quarters, JPMorgan stands out among these banks, as it reported a reduction in its deposit base over Q2-Q3 2015.
Deposits across U.S. commercial banks have grown sharply since 2010 due to the prevailing low interest rate environment since the economic downturn. This is because the resulting lack of lucrative investment options forced investors to shift a bulk of their liquid assets into interest-bearing deposits.
But with the Fed beginning the rate hike process last December, the interest rate environment is showing signs of improvement. This will open up better investment options for individuals as well as institutions – drastically reducing the deposit growth rate over coming quarters.
See the links below for more information about the 5 largest U.S. commercial banks:
- How Much In Domestic and Foreign Deposits Do The Largest U.S. Banks Hold?
- How Much Of Total U.S. Deposits Are Held By The 5 Largest U.S. Banks?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment/ ask questions on the comment section
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for U.S. Bancorp | Wells Fargo | JPMorgan | Bank of America | Citigroup
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