US banks' assets have dropped by $105bn in the last two weeks as a result of the bankruptcy of many large US financial institutions, Bloomberg reports.
The Federal Reserve states that this is the biggest fall in loans since 1973. Smaller banks have mostly been responsible for the loan cut, with a $45 billion decrease last week.
SVB, the 16th largest US bank, declared bankruptcy on March 10, accompanied by Signature Bank in New York, leading to the third-greatest economic downturn in US history. In the week after these disasters, other US banks received a record $165bn from the US Federal Reserve, because of the rising fears about the financial industry.
JPMorgan CEO Jamie Dimon warned on April 7 that US individuals are cutting back on their use of financial services, which might suggest a probable depression in the American economy. Despite concerns of an approaching recession, US Treasury Secretary Janet Yellen insists that the country's economy is going to expand and inflation to fall.
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