Discussion Paper
Deposits and the March 2023 Banking Crisis—A Retrospective
Abstract: In this post, we evaluate how deposits have evolved over the latter portion of the current monetary policy tightening cycle. We find that while deposit betas have continued to rise, they did not accelerate following the bank runs in March 2023. In addition, while overall deposit funding has remained stable, we find that the banks most affected by the March 2023 events are offering higher deposit rates and are growing their deposit funding relative to the broader banking industry.
Keywords: deposit beta; deposits; banks; funding;
JEL Classification: G21;
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https://libertystreeteconomics.newyorkfed.org/2024/03/deposits-and-the-march-2023-banking-crisis-a-retrospective/
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Bibliographic Information
Provider: Federal Reserve Bank of New York
Part of Series: Liberty Street Economics
Publication Date: 2024-03-27
Number: 20240327