NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) announces the release of this month’s edition of Bank Talk: The After-Show, by Ethan Heisler, founder and editor-in-chief of The Bank Treasury Newsletter and Senior Director at KBRA.
In this issue, Now What?, Ethan and Van look back over 137 quarters of FDIC financial data to construct a long-term view of how bank deposit beta correlates with the direction of interest rates—and why this interest rate cycle and the trend in deposit betas is so different from past cycles. Ethan discusses why he believes deposit beta may be peaking, and how an abundance of deposits in the banking system is muting the normal reaction of deposit betas to higher rates as in past cycles.
Finally, Ethan and Van discuss how, even with deposit pricing tightening in the last year, the public continues to hold larger deposit balances in their accounts, with 23% of deposits in noninterest-bearing deposits. Ethan and Van debate how this trend relates to the downward pressure on deposit service fees post-crisis, which on average accounts for 16% of noninterest income for regional and community banks.
Related Publications: (available at www.kbra.com)
- Bank Talk: The After-Show – Now What?
- Bank Talk: The After-Show – Now What?Bank Talk: The After-Show – Bankers Count Their Dollars and Cents
- The Bank Treasury Newsletter – April 2019
- The Bank Treasury Newsletter Chart Deck – April 2019
About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.