Can you please update your knowledge base?? This isn't how it works. Or, if it's intended to work like this, please add it to the list of bugs.
Hail and well-met, Stephen.
My name is Rin, and I am going to help you out tonight. First off, let me apologize: I am so sorry that you have not yet been given an update on your banking situation. Our teams have been working around the clock to patch this, and they are investigating how to restore your items and space to you. We really appreciate your patience as we get this resolved.
In the meantime, I have a few things you can do in the meantime so that you can continue to play. First, you can buy bag upgrades to expand your inventory capacity and therefore hold more items. It's similar to the banking system, but portable! (I personally like to carry everything with me, so I bought a ton of bag upgrades.)
Similarly, if you own a horse, you feed the horse oats once a day to gain a new inventory slot. This expansion is permanent, even if you get rid of the horse or stop feeding it. So, while we work on the bank situation, your best bet is bag expansions, although the horse will help, too.
Again, I apologize that it took so long to respond to you, and I'm sorry that I don't have a permanent fix for you right now. We really appreciate your patience as we work on getting this patch out as quickly as possible. I do recommend keeping an eye on the forums, because as soon as the banks are fixed we will have the news up there asap.
In the meantime, if there is anything else I can help you with, please do not hesitate to let me know.
Best of luck in all of your adventures!
Rin
The Elder Scrolls Online Team