Core deposits are a major funding source for financial institutions. Their size, growth, stability and composition are key factors that directly impact the interest rate risk profile, earnings at risk and economic value.
Knowing what factors drive deposit growth and deposit retention is essential to help financial institutions maintain a stable deposit base. Yet, very few allocate the resources required to identify and understand the factors driving their growth,
A stable deposit base is essential to drive sustainable and profitable growth. Given the projected, imminent increases in the interest rate, it is critical for financial institutions to understand the impact of these changes on their risk profile, liquidity, and profitability.