Data Shows Exactly How Big Banks Benefited From Collapse Of Silicon Valley Bank And Signature Bank

To no one's surprise, the ongoing crisis in the banking system started with run-ins on deposits held by the now-collapsed Silicon Valley Bank and Signature Bank, as underlined by recent data from the Federal Reserve.

What Happened: Deposits held by domestically-chartered banks in the U.S. edged down by $53.2 billion or merely 0.3% week-over-week to a seasonally-adjusted $16.2 trillion in the week ending March 15, according to the weekly national bank balance sheet released by the Federal Reserve late Friday.

The data, however, also shows an influx of deposits into larger banks. Deposits held by large domestically chartered banks jumped from $66.6 billion to $10.74 trillion. In contrast, those held by small chartered domestic banks fell by $120 billion to $5.46 trillion.

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Why It’s Important: Fears about security have driven depositors to withdraw their money from small banks, which have been perceived as risky in the wake of a handful of bank collapses and bank runs.

This month, First Republic Bank FRC faced liquidity issues, forcing private banks to intervene to bolster its liquidity. A group of bigger banks, led by JPMorgan Chase & Co., Inc. JPM, pledged $30 billion in loans to the troubled bank as well.

Shares of regional banks, overall, have been extremely volatile amid the latest developments.

On Friday, President Joe Biden strived to calm the nerves of depositors and investors by suggesting that all is well with the banks.

The SPDR S&P Regional Banking ETF (KRE), an exchange-traded fund tracking the performance of regional banks, ended Friday's session up 3.03% at $43.52, according to Benzinga Pro data. Since the crisis at SVB unfolded, the ETF has lost about 24%.

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