Tuesday Topic: Tackling the Challenges of Rising Interest Rates

Great points Rob,  Notice the specificity of this comment in the article - "When it comes to savings accounts, it doesn't have to be all or nothing. At the very least, keep your old bank, but add an online savings account".  I think this will be a huge issue.  Community bankers will keep the accounts, just lose the bulk of the funding unless they develop something beyond their current aging product line-up.

------------------------------
Neil Stanley
------------------------------
-------------------------------------------
Original Message:
Sent: 09-26-2022 16:20
From: Rob Blackwell
Subject: Tuesday Topic: Tackling the Challenges of Rising Interest Rates

A record $370 billion in deposits flowed out of U.S. banks in the second quarter. While most institutions still have plenty of liquidity, the size of the outflow is notable. As recently as five months ago, many analysts doubted that deposits would fall at any point this year.

With the Fed committed to its aggressive tightening regime, banks are coming to accept that they won't be able to keep deposit costs low for as long as they thought. Those that do risk losing high-value customers. It doesn't help that media outlets are increasingly publishing pieces like this one.

Don't miss our webinar with Matt Pieniazek, the president and CEO of Darling Consulting Group, on Oct. 4 at 2:00 PM ET, where we will be discussing how banks should manage their balance sheets in today's environment of soaring interest rates. Register here.

------------------------------
Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
------------------------------