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2026-07-18 13:38:12
[US Commercial Bank Deposits Shrink by $74 Billion in a Single Week, Short-Term Volatility Draws Attention] ⑴ Federal Reserve data shows that as of the week ending July 8, US commercial bank deposits fell to approximately $19.36 trillion, a decrease of about $74 billion from the previous week, mainly reflecting short-term fluctuations in the banking system's deposit balance. ⑵ From the perspective of fund flows, the deposit reduction may be related to the fading quarter-end effect, competition among money market funds, and the migration of some funds to higher-yield assets. Specific structural changes need to be assessed in conjunction with data from the following weeks. ⑶ From a market psychology perspective, the marginal decline in deposit size is not yet sufficient to constitute a systemic trend signal. However, given the Fed's maintenance of high interest rates, the persistence of deposit disintermediation pressure remains an important entry point for the market to focus on banking system liquidity. ⑷ Going forward, attention should be paid to whether deposit changes are accompanied by adjustments in large-denomination certificate of deposit rates or changes in commercial bank financing strategies, and whether they have a chain reaction impact on the pace of credit issuance. This will determine the potential significance of this indicator.
