Seems they forgot the loans create deposits thing…
By Jeff Cox
August 30 (CNBC) — American bank accounts have gotten noticeably smaller this year as mom-and-pop investors have begun to embrace risk.
Deposit balances in insured banks have fallen by $51 billion—a small amount relatively speaking, to be sure, but notable in that it reverses a six-year pattern, according to Market Rates Insight.
The drop in deposit balances poses a vexing problem to banks, which are under regulatory pressure to cut leverage and increase their percentage of cash on hand.
“The overall decline in deposits balances in the second quarter of 2013 is an indication that interest rates on deposits are likely to start climbing up in the near future” Dan Geller, executive vice president at Market Rates Insight, said in a statement.