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
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)
Talk: The After-Show – Now What?
Talk: The After-Show – Now What?Bank
Talk: The After-Show – Bankers Count Their Dollars and Cents
Bank Treasury Newsletter – April 2019
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.
Heisler, CFA, Senior Director