Don't neglect the option to offer early redemption incentives on high yield term deposits.
Neil Stanley
Board Member
TS Banking Group | 15 E Main St | PO Box A | Treynor, IA 51575
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Original Message:
Sent: 5/5/2021 12:34:00 PM
From: Barb Rehm
Subject: Weighing the Options for Excess Liquidity
With banks swimming, or maybe even drowning, in liquidity, this week's complimentary post from S&P Global Market Intelligence explores the options. Invest in short-term, low-yielding securities or hold the cash and wait for loan demand to pick up? Making that call largely turns on how long you think the excess cash will stick around. PNC, Bank of America, Fifth Third, KeyCorp, and Synovus are among the banks opting to invest. Regions and First Midwest are among the banks taking the opposite tack. "That securities book will help you short-term in NII, but you will pay for that dearly down the road, and we're playing for the long game," said Regions CFO David Turner Jr. "We're not about trying to generate short-term NII growth for that sake."
Which strategy is your bank choosing?
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Barb Rehm
Senior Managing Director
IntraFi Network
Arlington VA
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