BAS Case Study - March 2023
Sunny State Bank
IRR - FUNDING MATURITY INFO
Long-TermFunding (Repricing/Maturing > 3 Years) / Total Assets
5.8%
1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0%
4.1%
3.9%
Metrics
3.1%
2.9%
Bank State All Banks
2.8% 3.0% 2.8%
3.1%
2.6%
3.0%
2.5%
2.4%
2.3%
2.6%
2.4%
2.3%
2.0%
2.0%
1.8%
1.5%
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
2015Q1
2015Q2
2015Q3
2015Q4
2016Q1
2016Q2
2016Q3
2016Q4
2017Q1
2017Q2
2017Q3
2017Q4
2018Q1
2018Q2
2018Q3
2018Q4
Non-Maturity Deposits / Total Assets
72.0%
70.1%
68.2%
68.3%
67.3% 67.2%
68.0%
68.4%
65.2% 65.6%
64.4% 64.3%
65.9%
64.0%
61.6% 62.3%
60.0%
62.1%
59.1%
60.0%
56.7%
56.0%
53.5%
53.8%
52.0%
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
2015Q1
2015Q2
2015Q3
2015Q4
2016Q1
2016Q2
2016Q3
2016Q4
2017Q1
2017Q2
2017Q3
2017Q4
2018Q1
2018Q2
2018Q3
2018Q4
Repricing risk is the most common form of IRR, and is caused by a mismatch in the term structure of assets and liabilities. If a bank's asset structure is long-term, risk to rising rates can be partly mitigated by a longer-term funding structure (which could include a high amount of stable non-maturity deposits).
Made with FlippingBook Online newsletter creator