NEW YORK, Oct 17 Reuters Bank of America reported unrealized losses of 131.6 billion on securities held until maturity in the third quarter, growing from nearly 106 billion in paper losses in the second quarter.

The secondbiggest U.S. lender had about 603 billion in heldtomaturity securities, it said in a filing on Tuesday, shrinking from 614 billion in the second quarter.

Unrealized losses have come under closer scrutiny by investors since March. At the time, Silicon Valley Bank sold a portfolio of its holdings at a sharp loss, precipitating its collapse and fueling the worst industry turmoil since the 2008 financial crisis.

Analysts say it is highly unlikely that Bank of America would sell the securities at a loss.

All of these are unrealized losses are on government guaranteed securities, Bank of America39;s chief financial officer, Alastair Borthwick, told reporters on conference call discussing thirdquarter earnings. Because we39;re holding them to maturity, we will anticipate that we39;ll have zero losses over time.

And yet the holdings of lowyielding assets have also constrained the secondlargest U.S. lender39;s ability to make higher profit from deploying its cash in money markets or other assets with greater returns.

JPMorgan Chase had unrealized losses of 40 billion in its HTM portfolio in the third quarter.

Citigroup did not disclose paper losses on its portfolio for the third quarter. They stood at 24 billion at the end of the second quarter.

Banks…