Yep, that's M2 fiat TP with green ink all over it. OTOH, 2025 US Treasury dollars is on the increase.
Posted on 01/06/2024 7:25:47 AM PST by Kaiser8408a
Yes, BB King was right … about banking. “The Thrill Is Gone” from bank lending,
I observed yesterday that bank credit growth has been negative for the past year. The entire year!
On the bank deposit front, after losing more than a trillion dollars in deposits in 2023 – and seeing usage of The Fed’s emergency funding facility soar to a record high yesterday – total bank deposits rose by $24.2BN in the week-ending 12/27/23 (on a seasonally-adjusted basis) – that is the 4th straight week of deposit inflows…
Source: Bloomberg
On a non-seasonally-adjusted basis, deposits rose almost in line, up $20.3BN (the fifth week of inflows in a row)…
Source: Bloomberg
Interestingly the sizable deposit inflows are occurring alongside sizable money-market fund inflows…
Source: Bloomberg
…now we know where all that reverse repo liquidation cash is going…
Source: Bloomberg
Excluding foreign bank flows, the picture is even rosier with domestic bank deposit inflows of $33.8BN (SA) and $38.7BN (NSA) – the 5th week in a row of NSA inflows…
Source: Bloomberg
While it may surprise some, on an NSA basis, domestic bank deposits are now back above pre-SVB levels…
Source: Bloomberg
Large banks saw $24BN inflows last week and Small Banks $9.4BN (on an SA basis) and for the 5th week in a row both large and small banks saw NSA inflows (+$30BN and +$8.7BN respectively)…
Source: Bloomberg
On the other side of the ledger, loan volumes continued to shrink (despite the deposit growth). Large bank loan volumes fell $8.2BN (the 4th week of falling loan volumes in a row)…
Perhaps we should look at The Fed’s little beige book.
The problem is that The Fed doesn’t know what 7 plus 7 equals. Other than asset bubbles.
(Excerpt) Read more at confoundedinterest.net ...
[BTFP - Bank Term Funding Program]
**************
Free money for Friends of the Fed, but not for us.
I hate those RMDs.
The rate for these loans is over 5%.
Yep, that's M2 fiat TP with green ink all over it. OTOH, 2025 US Treasury dollars is on the increase.
I hear that song on SiriusXM all the time!
More good news being called bad.
Its actually a little under 5% (since mid December) and affords an arbitrage opportunity for banks via IORB.
The BTFP also afforded banks generous loan terms by accepting the face value of securities used as collateral.
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