U.S. Banks Suffer Biggest Deposit Drop SInce 'Tax Day' As Money-Market Fund Assets Surge To Record High

By Tyler Durden of ZeroHedge

Friday, July 12, 2024 6:07 PM EDT

For the 10th week in the last 12 (basically since taxes), money-market funds saw inflows, and last week was bigly with $51BN added pushing the total AUM to a new record high $6.15TN...

Source: Bloomberg

The Fed balance sheet rose by $2.5BN last week...

Source: Bloomberg

But as the Fed balance sheet rose, banks saw large deposit outflows last week, -$67BN on an SA basis...

Source: Bloomberg

BUT on an NSA basis, deposits rose by $42BN....?

Source: Bloomberg

Excluding foreign deposits, domestic banks saw $83BN in deposit outflows on a seasonally adjusted basis - the biggest since April's Tax Day decline. The drop was dominated by large banks losing $72BN (small banks saw an $11BN decline). On an NSA basis, domestic banks saw $43BN inflows (large banks +$30BN, small banks +13BN)...

Source: Bloomberg

Did the genii at The Fed just make the 'adjustment' clean up?

Source: Bloomberg

On the other side of the ledger, there was an overall shrinkage in loan volumes with large banks seeing volumes drop $4.7BN while small bank loans rose $4.3BN...