Banks Feel the Pressure: $78B in Deposit Flight From US Accounts

• JPMorgan CEO Jamie Dimon recently issued an alert on the banking sector’s need to keep up with demands for higher rates and avoid further deposit flight.
• According to Federal Reserve Economic Data (FRED), $78 billion exited American bank accounts from July 5th through 12th.
• Banks are feeling the pressure due to higher yielding money market accounts and potential fallout in the commercial real estate sector caused by hybrid work environments.

Deposit Flight From US Banks

In a recent warning, JPMorgan Chase CEO Jamie Dimon alerted shareholders of the banking sector’s need to keep up with demands for higher rates and avoid further deposit flight. According to newly updated stats compiled by the Federal Reserve Economic Data (FRED) system, $78 billion exited American bank accounts from July 5th through the 12th. Banks are feeling increasing pressure due to higher yielding money market accounts and potential fallout in the commercial real estate sector caused by hybrid work environments.

Competing With Money Market Accounts

Banks are feeling pressure to compete with higher yielding money market accounts as they invest significant levels of cash into third party intermediaries to bring in new deposits. Autonomous Research analyst Brian Foran says Dimon’s alert represents a “definite curb your enthusiasm moment” for banks after an industry-wide surge in second-quarter profits.

Impact of Hybrid Work Environments

US banks are also bracing for fallout in the commercial real estate sector fueled by the emergence of remote and hybrid work environments. A recent report from S&P Global Market Intelligence found 576 American banks are overexposed to commercial real estate loans based on regulatory guidelines, which represents an increase of 30% compared to one year ago.

Investment Risk Warnings

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on Twitter , Facebook and Telegram Surf The Daily Hodl Mix Check Latest News Headlines Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing

Recent Industry Announcements

Neon EVM Launches on Solana Mainnet July 20, 2023 Last Chance – Seize the Final Presale of MOOKY Before It Rockets Off on Uniswap, July 24, 2023 July 18, 2023 DEX Top Performer Token TET