There’s still a ton of uncertainty and speculation plaguing the US banking sector, but even if policymakers manage to stem the bleeding, SVB has thrown a spotlight on bigger problems lurking in the financial system.

The big concern now is not just one of solvency, but of liquidity.

Bank holdings of securities like USTs and MBS have gotten a lot of headlines, but bank lending has grown considerably over the last 18 months, even as the amount of bank reserves has fallen >$1.2 trillion.

Meanwhile, banks have been slow to raise deposit rates, so the outflow of deposits from the banking sector has grown in search of higher-yi