How Goldman Is Monitoring Small Bank Stress And Deposit Run Spillovers

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by Tyler Durden
Thursday, Mar 16, 2023 - 10:25 PM

Yesterday, we published a rather important report for subscribers, detailing "How To Track Bank Runs In (Near) Real Time" which in a time of widespread bank runs is what many depositors were looking for to determine if they should pull their money and deposit it with JPMega which is rapidly emerging as the only bank standing after this crisis is over... or just use their mattress.

This morning, perhaps inspired by our note, Goldman's chief economist published a note which even cribbed our title (if making it somewhat more politically correct) "How to Monitor Small Bank Stress and Its Spillover Effects" (available to pro subscribers in the usual place), in which Goldman summarizes its own preferred measures for tracking the pressure on small and midsize banks and the potential spillover effects to confidence, lending, and economic activity. The bank includes both measures available intraday and daily as well as measures that will be released with a longer lag (because, as we first said yesterday, while we would like to monitor deposit outflows at individual banks in real time, that information is mostly available to regulators not the public).

We excerpt from the full (must-read) note.