Large Bank Supervision Forum eBook

Internal Use Only

 Over half of the banking industry is part of the IntraFi network that allows customer deposits to be fully insured.  CDARS: − Certificates of Deposit − For new deposits, every Wednesday will be settled throughout the IntraFi network  ICS: − Non maturity deposits (either non-interest bearing or money market) − For new deposits: − Manual Processing: every Day will be settled starting at 2:30 pm and ending at 4:00 pm throughout the IntraFi network − Integrated processing: next Day − It should be noted that even if a Bank is doing the processing on an integrated basis, the Bank can choose to run it manually to ensure same day settlement  The cost is 12-15 bps to your bank − For a bank with 30% uninsured deposits, it would cost ~ 3-5 bps of ROAA to insure all of these deposits − The cost can be shared by lowering the rate on these deposits compared to your deposits rates If necessary, address uninsured deposit levels through CDARS and ICS . . .

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Source: https://www.intrafinetworkdeposits.com/

© 2023 – FinPro, Inc.

Internal Use Only

Move from hard currency to funds available at the Fed master account . . .

Minute 1 Liquidity = Cash Equivalents with a target of ≥ 5.00%

 A lesson learned is that the deposit run from Silicon Valley happened virtually and extremely quickly  As such, one big change is that the driver has shifted from vault cash to funding available in the fed master account.  Real time cash movements (ala FedNow) will only put more pressure on this reality.

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© 2023 – FinPro, Inc.