US bank’s deposit flows were stable in April and May, stabilising after large outflows in March triggered by the failure of Silicon Valley Bank. The Institute for International Finance has reviewed the US banking industry performance since the SVB shock and concluded that fears of a deposit flight were overdone. It said deposit growth had already “gone negative” in the US in the second half of 2022, as the Fed stepped up its hiking cycle. It found that one negative impact has been a slowdown in business and consumer lending over the past few months, which may contribute to lower economic activity. Based on Federal Reserve data, IIF said business lending in the US hit a “sudden stop” in May, with zero growth implying that loans coming due are being rolled over but with no new credit. IIF said commercial and residential real estate lending was holding up better than business and consumer lending.