GENEVA. Switzerland: To take advantage of better earnings as lenders resist increasing savings rates, European savers are withdrawing billions in deposits from traditional banks.

This phenomenon, known as a "bank walk," a slow but notable outflow of customer cash, comes as some the region's biggest lenders recorded considerable profits at the start of the year.

Amid rapidly rising interest rates, after almost 15 years of remaining at near zero percent, banks have charged higher interest for loans, but have been reluctant to increase interest on deposits paid to millions of their customers.

"Traditional banks need to decide whether to maximize their return by keeping rates on deposits as low as possible, or to prioritize their liquidity and stability by increasing rates and retaining customers' funds," noted Nicola Marinelli of Regent's University London, as quoted by Reuters.

Amid the persistence of high levels of inflation, money market funds have become popular among those seeking higher returns on their cash.

While it remains small compared to the 9.45 trillion euros held in current, or checking, accounts at banks across the euro zone, at the end of last year, the fund class was already worth more than 1.4 trillion euros.

UniCredit CEO Andrea Orcel said that despite a 1.6 percent decline in deposits in the first quarter, the bank had such a solid liquidity position, with a coverage ratio of 163 percent, it could afford to chase profitability in managing its deposit base.

HSBC CEO Noel Quinn described his bank's deposit loss as "nothing significant," according to Reuters, while Andy Halford, chief financial officer at Standard Chartered, said he thought the public would ultimately prioritize security over interest payouts.

"We will see people parking their money where it is safe," he told Reuters.

While most European banks have liquidity and capital levels above regulatory requirement, the collapses of US lender Silicon Valley Bank and Switzerland's Credit Suisse are examples of the potential effects of panicked bank runs by customers.