Bank failures highlight declining deposits

Depositors have accelerated withdrawals amid recent bank failures and sharply rising interest rates, raising concerns about the industry’s health and ability to withstand a crisis, experts says. Bank deposits fell by nearly $720 billion between the second and fourth quarters of 2022, leaving banks’ cash assets at their lowest levels in more than two years earlier this month. Wall Street remains concerned about how much more the system could get squeezed in the central bank’s fight against inflation, despite Fed reassurances that the U.S. banking system is “sound and resilient.”