Despite the many choices consumers have for managing their money and purchases outside of the traditional banking system, we witnessed a systematic flight to the safety of FDIC-insured deposits in state or nationally chartered banks. Specifically, total deposits at all FDIC-insured institutions increased by 22 percent when comparing deposit data from 2019 to 2020.1 Small business lending also increased significantly.
In my view, to enhance credibility in the system the comprehensive assessment exercise should be based on three main principles:  BIS central bankers’ speeches  5  •  First, the appropriate course of action should follow a “going concern” approach;  •  Second, the methodologies used in the asset quality review and in the stress test exercise should be well tested and proven.