RE: Gold doing well!4 May 2023 16:20
As the banking sector turmoil in the United States rages on, investors in the UK breathed a sigh of relief as Lloyds on Wednesday wrapped up a better-than-expected earnings season for top British lenders.
While across the Atlantic, a number of U.S. regional bank collapses sparked a deposit flight to larger institutions or to money market funds for higher returns, British lenders seem to be in a much better position, according to analysts.
UK banks did indeed face a small withdrawal of funds amid the U.S. banking crisis, with deposits falling by £18.1 billion in March, but it was not big enough to constitute a bank run, according to Capital Economics.
"The UK’s Big Five are showing no real signs of deposit flight, any unexpected deterioration in their loan books or undue risk-taking," said AJ Bell investment director Russ Mould in a note.
Instead, investors seem to be mildly perturbed by the lenders' cautious guidance, said Mould.