Non-Maturing Deposits ~ Interest Rate Symmetry, Evolution of the Fed, the Dismantling of Reg Q and other Mysteries...


08/05/16 at 05:05 PM | Published Under Executive Advisories

Non-Maturing Deposits
Interest Rate Symmetry, Evolution of the Fed, the Dismantling of Reg Q and other Mysteries...

It is possible to forecast the future course for Rates on Non-Maturing Deposits. It may appear to be a riddle, or even a mystery, and it can certainly be an enigma, but there is a key. That key is totally based upon the "economic self-interest" of Banks and Bankers.

Non-Maturing Deposits generally consist of Non-Interest Bearing Checking, Interest Bearing Checking Accounts, Money Market Accounts, Premium Money Market Accounts, Public Funds ~ Transaction Accounts and Savings Accounts. These Deposit classes now account for 58.78% of the Total Deposits of our Client Base as a whole, and these Deposit classes have been steadily growing, as a Balance Sheet percentage, for the past 25 to 30 years, the period since the demise of Reg Q.

We will specifically explore the history of this 25 - 30 year period later in this paper, but initially we will focus upon the characteristics of these Accounts that make them so popular among Depositors and such a focal point of attention at this time...

Click here to read more: Executive_Advisory__Non-Maturing_Deposits.pdf

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