Deposit drain from smaller banks into financial giants like JPMorgan Chase has slowed, sources say

Key Points

• The surge of deposits moving from smaller banks to big institutions including JPMorgan Chase and Wells Fargo has slowed to a trickle in recent days, CNBC has learned.
• The deposit drain, which roiled markets globally and forced regulators to intervene to protect bank customers, began improving around March 16, said people with knowledge of inflows at top banks.
• The situation is fluid and could change if concerns about other banks arise, said one person, who declined to be identified speaking before the release of financial figures next month.
• The past few weeks have exposed a glaring weakness in how some banks have managed their balance sheets, which could lead to more turbulence, said Citigroup CEO Jane Fraser.

First Republic Bank headquarters is seen on March 16, 2023 in San Francisco, California, United States.

Tayfun Coskun | Anadolu Agency | Getty Images

The surge of deposits moving from smaller banks to big institutions including JPMorgan Chase and Wells Fargo amid fears over the stability of regional lenders has slowed to a trickle in recent days, CNBC has learned.