Largest commercial bank run in half century underway right now

Financial Sense/Christopher Puplava/4-25-2023

“On an annual basis, total US commercial bank deposits are down 5.4% year-over-year (YOY) which is the largest annual decline in the history of the data going back to the early 1970s. This in turn is forcing banks to halt loans and liquidate their mortgage-backed securities and US Treasuries to meet deposit redemptions. Bank security holdings peaked on 02/23/22 at $5.846 trillion and now stand at $5.222 trillion, down $624 billion dollars and down 10.5% YOY.”

USAGOLD note: Most of the deposit flight is in the direction of money markets and too-big-to-fail banks, but the precious metals are also getting a significant share of the action – particularly among high net worth investors.

line chart showing the you percent change in bank deposits
Source: St. Louis Federal Reserve [FRED], Board of Governors of the Federal Reserve System (US)

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