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Liquidity Tightens at Smaller U.S. Banks as Larger Banks Hold Steady
Liquidity coverage of uninsured deposits declined noticeably at U.S. banks in 2023, particularly among smaller banking institutions, according to a new Fitch Ratings report. The report provides a snapshot of the current state of liquidity and uninsured deposit reliance within the U.S. banking sector, highlighting the resilience of larger banks and flagging potential vulnerabilities among smaller entities. As of September 2023, 67 banks reported liquidity coverage of less than 20% of their uninsured deposits compared to only nine in September 2021. U.S. bank liquidity is likely to remain relatively stretched until ... (full story)