JPMorgan Chase Faces $75 Billion Loss in Institutional Deposits as Clients Seek Higher Yields.

In the second quarter of 2023, JPMorgan's corporate and investment bank lost $75 billion.

JPMorgan Chase Faces $75 Billion Loss in Institutional Deposits as Clients Seek Higher Yields.

According to a new report, billions of dollars in institutional cash is leaving JPMorgan Chase in search of higher yields.

According to new data, cash deposits at JPMorgan's corporate and investment bank fell by $75 billion in the second quarter of 2023, according to the Financial Times.

This is a 10% decrease from the previous year.

People and businesses with large sums of money have been shifting away from the banking behemoth and the traditional banking system in general in favor of digital banks and money market funds, which usually provide 4% or more on insured deposits.

Regular banks are also changing how they handle non-interest bearing accounts.

According to Bank of America, business customers now keep 60% of their money in accounts that earn interest, a 30% increase over the previous year.

According to Bank of america, interest expenses have increased twice as fast as interest earned by the bank through loans and interest bearing assets.

Citigroup and State Street have noticed that they are paying more attention to the interest they earn on deposits.

According to JPMorgan, its regular customers are becoming more loyal to the bank, and the amount of money deposited by these customers decreased by 2% in the second quarter of this year.

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  • Pat
    Pat
    Go figure, that's when you fail to recognize your customer base and assume they won't look for better returns on their investment.
    11 months ago Reply