Blog — 19 Jul, 2023
Depositors wake up to higher rates as banks battle liquidity pressures
Highlights
Higher rates and the liquidity crunch that erupted in March put a much larger premium on deposits.
Banks, including those acting out of an abundance of caution, have responded to market turmoil by bolstering liquidity through the addition of higher cost funding.
The cat is out of the bag – depositors have woken up to higher rates and banks now face increasing funding costs and pressure on net interest margins.