Good stuff Neil. Thanks for reminding us of this tool you developed back when none of us worried about funding pressures!
By the way, I just did a review of my local competitors and found the bank paying the highest promoted rate right now has one of the lowest pressure gauge percentage at 28%.
They need some better advice!
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John Tyson
CFO;Chief Financial Officer - CFO
Altamaha Bank & Trust Company
Vidalia, GA
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Original Message:
Sent: 08-08-2023 15:57
From: Neil Stanley
Subject: Measuring Deposit Funding Pressure
Want to see a measure of the pressure on your bank or competitor banks regarding deposit funding as of June 2023? Use this link Pressure Gauge for Bank Funding 062023 (core-cd.com) and simply enter the name of the bank to immediately see the latest data about your bank's CD portfolio cost and loan/core deposit ratio.
Note the median bank CD portfolio cost went from 1.94% in March 2023 to 2.70% in June 2023. To be clear, pressure is not the same as performance. Many high performing banks have funding pressure. The pressure gauge helps understand the urgency that any specific bank has in managing its deposits.
To learn more about the Pressure Gauge for Bank Funding check out this publication Gauging the pressures on your bank's liquidity relative to your peers (bai.org)
If you are part of a financial institution that wants to better manage your deposit funding, now is the time to learn about the new processes, products, and sales platform that are available today. The deposit world has changed and is changing. If your team only knows how to blast out a CD special and be open to ad hoc exception pricing, you need to invest a little time today to learn about the future of deposit strategies.
What is your bank doing to manage the pressure on deposit funding today?
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Neil Stanley
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