Shared deposit networks eye ‘$2 trillion’ extra capacity
Following post-SVB boom, loosening restrictions expected to lead to gradual rise
US banks could split much more depositor funds with each other before hitting restrictions under new laws, with one network provider estimating a doubling of capacity. The popularity of ‘reciprocal deposits’ boomed following Silicon Valley Bank’s collapse, as lenders sought to protect more savings with federal insurance.
“It’s a significant increase in implicit deposit insurance,” says Edward
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