Reply To: JPMorgan Sets Aside $900 million To Prepare for Economic Turmoil


Bank (“Private Depository Institutions”) Assets jumped $478 billion (7.6% annualized) during Q4 to a record $25.606 TN. Bank Assets expanded $2.160 TN (9.2%) over the past year and $5.550 TN (27.7%) in two years – for the most rapid expansion of Bank Assets since the early seventies. Bank Loans expanded nominal $425 billion during Q4, second only to Q1 2020’s $561 billion. Bank Mortgage loans grew $108 billion during the quarter, the biggest gain since Q2 2016. Consumer Loans increased $95.7 billion, second only to Q1 2010’s anomalous $312 billion.

The Bank Asset “Reserves at the Fed” dropped $215 billion during the quarter to $3.644 TN, while Treasury holdings jumped $190 billion to a record $1.646 TN. Treasuries surged $443 billion, or 36.8%, during 2021 (two-year gain $767bn). Bank Agency/MBS holdings rose $56 billion during the quarter and $512 billion for the year – to a record $3.888 TN. Agency holdings inflated $1.253 TN over the past two years, or 47.6%.

On the Bank Liability side, Total (Checking and Savings) Deposits jumped $573 billion (11.2% annualized) during the quarter to a record $20.986 TN. Total Deposits were up $2.124 TN in four quarters and $5.453 TN, or 35.1%, over two years.