In the last 5-10 years, there's been a lot of growth in DDA, NOW, MMDA, and savings accounts. These deposits can provide a great low-cost funding base, but they can also draw attention at your next exam.
Examiners are looking closely at these surge deposit balances. Specifically, they're looking to see if you've considered surge deposits in 3 ways.
Surge Deposits: 3 Regulatory Expectations
- Consider the effect of surge deposits when setting decay rate assumptions
- Analyze their possible impact on liquidity
- Assess the potential impact on funding costs
Solution? Surge Deposit Analysis
If you're not sure that you're meeting these criteria, consider having a surge deposit analysis done. It's not expensive, and can save you a lot of headaches.
Plansmith offers a comprehensive Surge Deposit Analysis. You'll get complete documentation, then be shown how to use the results to adjust your decay assumptions and cash flow modeling scenarios.
Have questions or want to get started with an analysis? Click to book time with me.