JPMorgan says more banks could run out of reserves like SVB if pace of this deposit flight continues

U.S. banks are using reserves to cover for the cash that depositors are withdrawing, setting up a potentially calamitous situation down the road, JPMorgan Chase has warned. In a turbulent March, depositors have pulled just over $300 billion from domestic banks, according to seasonally adjusted Federal Reserve data. At the same time, JPMorgan estimates that money market mutual funds have seen about $360 billion in flows from investors in search of higher yields. “The current pace of deposit loss to MMFs raises questions over sustainability,” JPMorgan strategist Nikolaos Panigirtzoglou wrote in a Friday client note. “If it continues for a…