the numbers small us banks managed to stop hemorrhaging deposits last week but larger banks saw a bigger outflow of cash new data from the federal reserve showed friday key details deposits at smaller banks fell by a scant 11 billion in the week ended march 22 according to the fed’s weekly h8 survey by contrast deposits plunged by a revised 184 billion in the prior week immediately after the collapse of silicon valley bank earlier this month the latest figures suggest an emergency lending program set up by the federal reserve to stop bank runs at smaller institutions and stabilize the financial system appears to be working larger us banks on the other hand did show a decline in deposits they fell by 97 billion and gave back most of the increase from the prior week initially investors at smaller banks shifted their money to larger ones for safekeeping investors are storing a record amount of assets in moneymarket funds according to separate data from the investment company institute total us deposits including those at foreignowned banks declined by 132 billion last week to 174 trillion overall us bank deposits have fallen gradually since last year as clients sought higher returns ultimately the decline in deposits could reduce bank lending and harm the economy big picture wall street djia is watching the fed report to see if bank deposits continue to decline and a socalled credit crunch emerges so far there’s little evidence of a sharp reduction in lending commercial and industrial loans rose by 4 billion last week mostly through foreignowned banks business loans at both large and small us banks were basically unchanged economists say a credit crunch could take a few months to materialize