Deposit Strength Drives Valuations as Trump Pushes Fed Shift
Funding costs have eased since the 2023 liquidity crunch and Fed rate hikes, but according to S&P Global Market Intelligence, investors still reward banks with strong, low-cost deposit franchises. Institutions with higher levels of non-interest-bearing deposits are trading at significantly higher valuations, underscoring the premium placed on stable, less rate-sensitive funding bases.
Another S&P article discusses how President Trump’s moves to reshape the Fed could speed up the central bank’s deregulatory agenda and bring more pressure for rate cuts.
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