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  • Frank Tian

US banks’ Q4 Update - Deposit

Lenders, have you seen increased interest from consumers?


Here is why.


In the latest Q4 reports, the largest 4 US banks saw their consumer deposit moving down meaningfully for the 1st time in a while.


📌 During the early phase of the pandemic, suppressed demand, government assistance, and lenders’ forbearance programs help build up the consumer balance.


In 2022, the inflation stayed higher and longer than expected. The central bank began to hike the interest rate.


📌 That is why the consumer deposit peaked in Q2 last year.


The outflow of deposits began to show in Q3.


And accelerated in Q4.


📌 The good news is, the overall deposit is still 40% more than 3 years ago.


Even considering the inflation, it is still a net positive.


That provides a much-needed cushion for consumers - to deal with whatever is coming in 2023.


But some have to tap into credit again to manage their finance.


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