US bank credit is approaching a critical milestone going backwards:
![](https://api.macrobusiness.com.au/wp-content/uploads/2024/01/1-38.png)
![](https://api.macrobusiness.com.au/wp-content/uploads/2024/01/2-27.png)
![](https://api.macrobusiness.com.au/wp-content/uploads/2024/01/3-23.png)
The pivot point is March when the Fed’s Bank Term Funding Program is installed after SVB last year expires.
This will expose the small banking sector to a renewed liquidity crunch and possible deposit flight:
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![](https://api.macrobusiness.com.au/wp-content/uploads/2024/01/bfm4FDF.jpg)