Non-operational deposits flooded US G-Sibs in Q1
JP Morgan also sees a big jump in its maturity mismatch add-on
Systemic US banks projected far higher cash outflows related to non-operational deposits – meaning surplus cash dumped by clients – in their Q1 liquidity risk disclosures than in those for end-2019. This suggests much of the cash poured into the lenders over the first quarter was not for companies’ day-to-day needs, but excess dollars placed there for safekeeping.
The eight US global systemically important banks (G-Sibs) collectively projected they would see $728 billion of non-operational
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