Bank Deposits Stabilize Amidst Economic Uncertainty

Deposits at US commercial banks rose for the first time in a month, indicating stabilization after the recent bank failures. Deposits rose at both large and small banks, with small banks being hit particularly hard by deposit outflows. Overall credit from US banks declined by a record of more than $120 billion, largely due to banks divesting $87 billion in securities to nonbanks. Lending to businesses and consumers held steady with $12.07 trillion in loans outstanding.