Big Banks Seeing Dramatically Higher Deposit Growth Than Local Banks Since Great Recession

Nearly 80 percent of banking institutions have increased their asset levels since the recovery period of the Great Recession. That’s according to the results of a flash poll conducted by the national accounting and business advisory firm Baker Tilly Virchow Krause, LLP (Baker Tilly).

“The amount of deposits in banking institutions from 2008 to the end of 2018 have increased from around $9 trillion to $13.5 trillion, respectively,” Timothy Kosiek, CPA, Baker Tilly partner and firm leader of the depository and lending practice, said. “This is partially due to the wave of consumers moving away from alternative investments.”

“The largest banks have seen the greatest increase in deposits since 2008, causing more competition within community banks who are fighting over a smaller pool of money” James Jarrett, CPA, firm director in Baker Tilly’s depository and lending practice, said. “With more consumers investing in money market funds, which larger banks can offer on their own platforms, community banks must often utilize third-party platforms for these and other transactions which has created an added cost and a potential disadvantage in the battle for deposits.”