When Stable Deposits Become Less Stable

Bank deposits may be less stable than they used to be, according to a Basel Committee on Banking Supervision review of more than 100 academic studies and regulatory reports. Uninsured deposits are larger and more concentrated, customers can move money more easily, and higher interest rates create the incentive to do so. The Fed’s 2022–2023 hiking cycle showed how quickly deposits can leave banks. Read our latest research brief to learn the takeaways for bank management.