US Banks Face Mounting Challenges as Deposits Decline and Losses Mount.

Depositors withdrew $126 billion from US banks during the week ending March 22, with the largest 25 banks losing $90 billion. Total industry deposits fell to $17.3 trillion, down 4.4% from the same week a year ago. The outflows are attributed to pressure from the Federal Reserve's campaign to lower inflation, causing customers to seek out higher yields. Some of the money is flowing to money market funds, with investors pouring $508 billion into those funds since the beginning of January. The challenge for banks is to keep customers without raising rates and making themselves less profitable.