Journal Article
Community Bank Funding Is Getting Costlier and Riskier
Abstract: Banks’ core funding has been under pressure since the Federal Open Market Committee (FOMC) began raising rates in early 2022. As depositors shift funds out of low-yielding savings and noninterest-bearing deposit accounts and into more lucrative alternative investments, community banks have increasingly turned to longer-maturity deposits and borrowings to finance their balance sheets. Although these funding sources allow banks to retain their asset size, they are both more expensive and potentially less stable.
Keywords: community banking; deposits; interest rates;
Access Documents
File(s):
File format is application/pdf
https://www.kansascityfed.org/Economic%20Bulletin/documents/9935/EconomicBulletin23LaliberteMarshSharma1219.pdf
Description: Full Text
Bibliographic Information
Provider: Federal Reserve Bank of Kansas City
Part of Series: Economic Bulletin
Publication Date: 2023-12-19
Pages: 4