Barclays Warns of ‘Second Wave’ of Deposit Outflows as ‘Sleepy’ Depositors Awake and Run for Exits
After a month of uncertainty, Barclays warned that a “second wave” of deposit outflows is increasingly likely, a sign that the latest banking crisis is far from over.
The collapse of Silicon Valley Bank (SVB) and Signature Bank forced federal regulators to rush to backstop the banking system, which calmed market fears in the short term after many customers pulled billions out of their deposits.
Meanwhile, another wave of bank runs is expected to hit the system, as “sleepy” customers begin to wake up to the existence of higher interest rates available to them in money-market funds, according to Barclays strategist Joseph Abate….