))
Navigating upcoming rate changes: How to manage liquiditiy
Manage episode 440254196 series 3316304
Innhold levert av Abrigo. Alt podcastinnhold, inkludert episoder, grafikk og podcastbeskrivelser, lastes opp og leveres direkte av Abrigo eller deres podcastplattformpartner. Hvis du tror at noen bruker det opphavsrettsbeskyttede verket ditt uten din tillatelse, kan du følge prosessen skissert her https://no.player.fm/legal.
With many experts predicting that the Federal Reserve will lower interest rates this week, this episode delves into what financial institutions should expect now that rate drops are on the horizon. Banks and credit unions are under pressure to reevaluate their strategies for managing deposits, loans, and overall financial health. We will explore topics such as:
- The implications of expected rate cuts by the Federal Reserve and how institutions can adjust to a falling-rate environment.
- Why liquidity remains a critical concern with deposits becoming a scarce resource and borrowings and brokered funds increasing to meet liquidity needs.
- The potential for earnings pressure on bank margins as financial institutions struggle to lower deposit costs in line with falling yields.
- How rate cuts may impact capital structure, particularly around OCI on bonds and capitalization levels.
Our guest is Dave Koch, Director of Advisory Services at Abrigo, who brings decades of experience in working with financial institutions. In this episode, Koch breaks down the current consensus on rate cuts, what they mean for financial institutions, and how to navigate an industry facing liquidity constraints and depositor expectations for higher returns.
Learn more about the proposed brokered deposits rule here.
Helpful links:
Webinar: How to track and monitor deposit behaviors
Podcast: Outsourcing ALM: Best practices for the current interest rate landscape
Checklist: Choosing an effective ALM model
17 episoder
Del
