US Banks Brace for $521 Billion Deposit Drop and Bolster Reserves Amid Economic Uncertainty.

The largest US banks are expected to reveal a $521 billion drop in customer deposits from a year earlier, the biggest decline in a decade, as customers flock to products offering higher rates and money market funds. The coming first-quarter disclosures from the big banks could intensify concerns about deposit-mix and, should lenders miss expectations, set off more inquiries about the health and future of the industry. Banks are also facing scrutiny over their earlier decisions on how and where they invested their excess cash, as the value of those assets fell due to the Fed's push to raise rates.