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FDIC Quarterly | March 17, 2023 |
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New Report Shows That Deposit Growth Moderated and
Office Closures Decelerated
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Deposit growth moderated and bank office closures decelerated in the year ending June 30, 2022, following near-record deposit growth and accelerated net office closures in the preceding two years. More than two years after the onset of the COVID-19 pandemic, migration effects of the pandemic on bank offices may be appearing in Summary of Deposits Survey results, according to the FDIC report, “2022 Summary of Deposits Highlights,” published in the FDIC Quarterly.
The FDIC found that in the year ending June 30, 2022:
- Deposit growth rates for the banking industry moderated compared with the preceding two years but remained nearly double the pre-pandemic average.
- Noncommunity banks reported higher non-merger-adjusted deposit growth compared with community banks but reported lower merger-adjusted deposit growth.
- Deposit growth was widespread across asset size groups, county types, and Minority Depository Institution designations.
- Offices of noncommunity banks closed at a higher rate compared with community banks, underscoring the continued importance of community banks.
- Most Minority Depository Institution designations reported a merger-adjusted net gain in offices as they continued to serve an important role in the banking industry.
- Changes in the number of offices between June 2021 and June 2022 show some positive relationship to reported migration patterns in metropolitan statistical areas between 2020 and 2021.
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