SI - Bank of America gets ~$15B in new deposits as confidence in small banks weakens - report

2023-03-15 11:34:55 ET

• Bank of America ( NYSE: BAC ) is said to have received more than $15B in new deposits in recent days following the collapse of three regional banks.
• Confidence in smaller lenders has taken a hit following the collapse of Silicon Valley Bank ( SIVB ), Signature Bank ( SBNY ) and Silvergate ( SI ).
• The large inflow was spurred by customers shifting to bigger banks deemed to big to fail, Bloomberg reported citing sources with direct knowledge of the matter.
• During the pandemic, bank deposits grew on account of stimulus measures for customers and businesses.
• However, deposits shrank amid higher interest rates in the aftermath of the pandemic. At the end of 2022, deposits at BofA ( BAC ) were down $8B compared to the end of Q3 2022.
• The bank declined to comment on the development.
• Other big lenders such as JPMorgan Chase ( JPM ) and Citigroup ( C ) have also seen a big influx in new accounts .

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