Over the past several years, the banking industry has seen seismic shifts in deposits as trillions of dollars in Government stimulus were released into the economy, followed by a period of dramatic increases in market rates which then resulted in massive amounts of low yielding balances migrating into higher-paying CDs and non-bank investment products. Now, as deposit rates have begun to fall, we're seeing depositors look for higher yields both inside and outside the banking industry.
As another summer fades into the review mirror, I think back to all those family vacations my wife and I took our kids on and the all too familiar question that came every year as we got closer to our destination (and the end of my patience); “Are we there yet?” And just like how we never seemed to get to that destination fast enough, the banking industry just can’t get to a place of deposit stability fast enough either.
