Infotech

A brake on bank deposits in the United States



Posted Apr 15, 2022, 12:15 PMUpdated on Apr 15, 2022 at 5:08 PM

The move shows how inflation and rising interest rates are hitting US households. In an unexpected trend reversal, banks could see customer deposits fall this year, for the first time since World War II. However, deposits have continued to increase, and at a sustained rate, in recent years. In the fourth quarter of 2021, they still increased by 10.5% in one year. And they had exploded during the pandemic, with Americans managing to maintain their purchasing power but increasing their savings to deal with possible hardships. Over the past two years, deposits have jumped by 35%.

At the end of February, analysts were still predicting a 3% increase over the year for the 24 largest American banks, which make up the KBW Nasdaq Bank index and attract a total of nearly 60% of the 19,000 billion dollars filed in the United States at the end of last year. A month and a half later, according to the “Wall Street Journal”, the forecasts have been reversed and we now anticipate a drop of 6%, even if analysts’ opinions diverge.

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