Bank deposits have been increasing for more than a year, according to the FDIC. While that could let banks make more loans, many banks are being cautious.
Rising interest rates have cranked up the interest banks are paying depositors. But banks also have a lot of cash stuck in low-interest bonds and loans they made before the Federal Reserve started raising interest rates.
The failures of Silicon Valley Bank and Signature Bank had a lot of depositors worried about their own banks. While many moved their depositors to bigger institutions, bank deposits have been trending downward overall.
