A recent survey reveals that consumers and companies are taking billions of dollars out of US banks due to concerns about the health of the financial industry.
According to the most recent figures available from the Federal Reserve Economic Data (FRED) system, deposits in US commercial banks decreased by $100 billion over 3 weeks, from $17.38 trillion on September 27 to $17.28 trillion on October 18.
The Federal Reserve recently surveyed 25 individuals, including academics, mutual funds, market experts, and research and advising businesses. The study results coincide with the deposit flight.
The industry may have survived early financial shocks this year, but banks are still vulnerable to another catastrophe, according to the participants, for 2 main reasons.