U.S. Capital Markets Glide Path to Clearer Skies

SVB wasn’t the only bank with explosive deposit growth Banks had a lot of deposits they needed to invest following the COVID-stimulus

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000

• Total bank deposits

swelled in the wake of the pandemic, as the U.S. passed massive stimulus equating to 25% of pre pandemic GDP.

16% annual growth

8% annual growth

• Much of the stimulus

ended up in individual and bank deposit accounts.

• Total deposits grew by

35% from February 2020 to the peak in April 2022,

reflecting an annual growth rate of 16 %.

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2021

2023

Deposits at Commercial Banks (Billions)

21

Source: Federal Reserve