Is this unpredictable market causing havoc on your deposit portfolios? You are not alone my friend. To help ease some of that tension here are a few key things to remember to maintain your course for the remainder of the year.
The Fed has been steadily raising rates since 2016, and although deposit rates have been slow to keep pace, intense competitive forces have once again taken hold of deposit portfolios. Margins are being squeezed, and strong signs of a falling rate environment compound the difficulty of managing deposit products and pricing.
Below, we see the evidence of price wars and increased pricing aggression throughout 2018, in contrast with Fed rate expectations in 2019 H2.