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America’s Smallest Lenders See Deposit Boost Amid Banking Turmoil on Wall Street

  • Community banks report inflows during tumultuous week
  • Economists are closely monitoring lenders for spillovers

America’s smallest lenders are seeing an increase in deposits after the failure of three US banks dented confidence in the stability of the sector.  

The inflows at community banks — typically tight-knit lenders that serve local businesses and hold $10 billion or less in deposits — came in recent days as consumers witnessed the biggest US bank failure since the financial crisis with Silicon Valley Bank followed by turmoil for regional lenders.