Capital Markets School - October 2023

Internal Use Only

Increase in NMD

• Depositors moved away from long term products as rates remained at historically low rates. • Significant changes in technology, demographics, and competition since these deposits came into the banks.

23

23

Internal Use Only

Repricing Betas

Deposit Repricing Betas have many names • Betas

• Repricing Betas • Pass Thru Rate • Price Sensitivity Percentage of a market rate increase that is applied to a deposit account type Beta = Account Rate Change/Market Rate Change

24