The ongoing struggle with banks: Is there a solution?

The US banking system remains fragile, with bank deposits falling by about $750 billion during the last year, the largest in records that go back to 1973. While bank runs have subsided, people are still moving money out of banks, at a pace that’s more like a walk than a run. Investors are now scouring a weekly Federal Reserve report known as the H.8 release, which comes out every Friday around 4.15 pm. The report includes aggregate data on bank assets and liabilities, including the amount of deposits in commercial banks. Declining deposits are worrisome. On March 30, the Biden administration released a plan to tighten bank regulations that were weakened during the Trump administration, when a combination of legislative and regulatory changes eased the burden on banks with less than $250 billion in deposits.