US Bank Deposits Increasing

The FDIC has released its December edition of the FDIC Quarterly, which contains an article on Highlights from the 2008 Summary of Deposits Data:

To better understand the industry’s level of expansion, it is useful to look at various measures of deposit and office growth in relation to demographic trends. For example, trends in deposit growth and population can be compared to the number of bank offices. As shown in Chart 2, banks continue to expand their retail presence at a faster pace than population growth at the national level. Both the number of offices per million people and the volume of deposits per office continue to increase. However, the pace of this growth is slowing. Indeed, the annual growth in both domestic deposits per office and offices per million people were below their respective five-year averages.

This will be another data point to support the thesis of Banks’ Advantage in Hedging Liquidity Risk.

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