U.S. bank deposits fall, but lending inches higher in latest week — Deposits at commercial U.S. banks dropped in the week ended Apr. 26, but loans were also on the up and up, suggesting that credit conditions remain steady at a time when regional banks remain in the crosshairs, data released on Friday by the Federal Reserve showed.

Deposits at large U.S. banks fell to $17.167 trillion from $17.180 trillion a week earlier, on a seasonally adjusted basis. 

Commercial bank lending increased a seasonally adjusted $41.60 billion during the week. On an unadjusted basis, loans and leases increased nearly $44 billion.

Residential lending rose $5.50 billion, commercial real estate loans rose $13.7 billion, and consumer loans rose nearly $10 billion from the prior week. Commercial and industrial loans were roughly unchanged at $2.765 trillion.

The fall in bank deposits come just as fresh banking turmoil emerged on Wall Street. Earlier this week, JPMorgan (NYSE:JPM) acquired First Republic as part of receivership deal after latter failed to secure funding privately.

“While many thought JPM’s purchase of FRC out of receivership would stop the “who’s next?” conversations, investors are clearly continuing to focus on remaining players that are deemed the weakest,” UBS said in a recent note.




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