Tags: u.s. treasury | bank deposits | stability | liquidity

Treasury: Banks Deposits Stable, Liquidity 'Substantial'

Treasury: Banks Deposits Stable, Liquidity 'Substantial'
U.S. Department of the Treasury (AP)

Thursday, 04 May 2023 11:11 AM EDT

The U.S. Treasury Department Thursday said it was continuing to monitor market developments amid sharp drops in the shares of regional lenders PacWest Bancorp and Western Alliance Bancorp, but deposit flows were stable.

"We continue to closely monitor market developments," a Treasury official said. "The banking system has substantial liquidity and deposit flows are stable."

Shares of Los Angeles-based PacWest were down 60% after the lender confirmed it was exploring strategic options. Western Alliance's stock was down 58.2%, despite a statement from the bank saying it had no unusual deposit outflows and had adequate liquidity.

Experts say the share price moves do not reflect the banks' fundamentals and are likely a result of short-selling activity following the collapse of First Republic Bank and its sale to JPMorgan Chase & Co. on Monday.

First Republic was the third major casualty of the biggest crisis to hit the U.S. banking sector since 2008.

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
The U.S. Treasury Department Thursday said it was continuing to monitor market developments amid sharp drops in the shares of regional lenders PacWest Bancorp and Western Alliance Bancorp, but deposit flows were stable.
u.s. treasury, bank deposits, stability, liquidity
151
2023-11-04
Thursday, 04 May 2023 11:11 AM
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