Capital Markets Examiner School, Providence, RI

Deposit Mix

 Increases in NMD and Increases in Surge Deposits have resulted in large amounts in low cost or no cost deposit products  Great for bank’s Interest Expense

 The departure of Surge Deposits is a definite funding risk for the bank

 However, if the Surge Deposits stay but migrate to a different product, the bank realizes an immediate increase in Interest Expense without gaining additional funding

Deposit Decay

Federal Deposit Insurance Corporation