Orla McCaffrey
speaker
593 appearances
13 recordings
1 series
first heard Mar 2020
last heard Jun 2022
Orla McCaffrey’s voice in public audio — every appearance, attributed to the second.
Trend
recordings per month · last 12 monthsNo recordings in the last 12 months.Older appearances are listed below; set an alert to hear about the next one.
Appearances
So now they have this opportunity to kind of breathe life back into that core business.
And a key to that is holding these deposit rates low, which means folks aren't going to see more interest in their accounts, at least at first.
The real key is for loan growth to really pick up and hopefully return to pre-pandemic levels.
And it is definitely on the way there.
And when I say loan growth, I mean the rate at which consumers and businesses are asking banks to borrow money.
So the more that happens, the more money banks can lend, the more they can charge these higher interest rates that the Fed has set now.
And that will kind of use up some of the deposits that they have on hand.
And once they need...
more deposits to lend out, then that might be a trigger, that might be an incentive to finally say, hey, let's solicit more deposits, let's offer these higher interest rates to consumers.
Another option would be if a smaller online bank that's not one of your
large national banks that already has a ton of deposits, kind of preemptively raises deposit interest rates in an effort to garner customers and deposits that they don't already have.
That could kind of force the hand of other banks to compete and do the same.
But it's likely at the beginning that they will kind of just all act in unison by not acting, by not raising rates.
Another thing that could kind of change the picture and prompt banks to start raising rates is if customers kind of on a large scale start realizing that the money in their savings account isn't really returning what it was a couple of years ago and choose to move that money or a portion of it into higher-yielding investments, something like the stock market or a specific stock, a mutual fund, even treasuries.
Debt would likely pay more than a savings account.
So if that happens kind of on a widespread level, then banks would need to solicit some more deposits, would need to compete for some of that money and might be incentivized finally to increase the rate they're offering to savers, to depositors.
There is light at the end of the tunnel.
Most of the analysts I spoke to and executives on their earnings calls last month kind of pegged the end of 2022 or early 2023 as when lenders might start raising the rates they offer depositors.
But they do expect the Fed to hike rates as many as two or three times without any kind of corresponding move from banks moving their deposit rates upward.
So not to say that lenders won't raise rates during what they call the rising rate cycle, but it will just happen later.
Showing 141–160 of 593 · page 8 of 30
← Previous
Next →