The numbers: Small U.S. banks stopped having hemorrhaging deposits last week, but larger banks saw a larger outflow of cash, according to data from the Federal ReserveFederal Reserve on Friday.
The Fed's weekly H 8 survey shows that deposits at smaller banks fell by a scant $1.1 billion in the week ending March 22, down from $1.1 billion.
The previous week, deposits plunged by a revised $184 billion, after the collapse of Silicon Valley Bank earlier this month.
The Federal Reserve set up a emergency lending program to stop bank runs at smaller institutions and to stabilize the financial system seems to be working, according to the latest figures.
On the other hand, larger U.S. banks showed a decline in deposits. They fell by $97 billion and gave back most of the increase from the previous week.
Initially, investors at smaller banks shifted their money to larger ones for safe-keeping.
According to separate data from the Investment Company Institute, investors are storing record amounts of assets in money-market funds.
Total U.S. deposits, including those at foreign-owned banks, declined by $132 billion last week to $17.4 trillion.
Since last year, U.S. bank deposits have fallen slowly as clients seek higher returns. The decline in deposits could affect bank lending and hurt the economy.
Wall Street DJIA is watching the Fed report to see if bank deposits are declining and a so-called credit crunch emerges.
There is little evidence of a reduction in lending so far. Commercial and industrial loans increased by $4 billion last week, mostly through foreign-owned banks. The business loans at both large and small U.S. banks were basically the same.
Economists say a credit crunch could take a few months to materialize.