LEXINGTON, Virginia, March 27 (Reuters) – The shuffling of deposits from small to massive banks may have a disproportionate influence on U.S. small companies who rely closely on group and regional monetary establishments for credit score, Federal Reserve Governor Philip Jefferson stated on Monday.
“We’re centered on the macroeconomy however we’re conscious that there are potential distributional elements,” if depositors transfer money away from smaller banks, Jefferson stated.
Current banking sector stress has led to declining deposits at smaller establishments and “we’re going to must see how that performs out,” Jefferson stated.
Reporting by Howard Schneider
Modifying by Chris Reese
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