Earlier this year, the U.S. banking industry encountered its worst crisis since the global financial crisis in 2008 as three regional banks failed, affecting investors' and depositors’ confidence in the banking system. The FDIC reported that U.S. banks lost $472 billion in deposits in the first quarter.
In the Federal Reserve’s annual stress test, all 23 U.S. banks weathered a severe recession scenario while lending to consumers and corporations. Despite showing signs of stability, the banking industry, especially big banks like Citigroup Inc. (C), continues to lose deposits as customers shift their deposits to regional banks in search of higher interest rates.
