US banks hold on to cash as insurance

The cash buildup is another example of a risk-averse approach from a sector still trying to regain its footing after a string of recent bank failures, one which could result in restrained lending. — Reuters

NEW YORK: US lenders are holding onto large piles of cash as insurance against a slowing economy, continuing deposit outflows and looming tougher liquidity rules that could particularly impact mid-sized banks.

The buildup is another example of a risk-averse approach from a sector still trying to regain its footing after a string of recent bank failures, one which could result in restrained lending.