Deposits and the March 2023 Banking Crisis—A Retrospective

Stephan Luck and Matthew Plosser

No 20240327, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: In this post, we evaluate how deposits have evolved over the latter portion of the current monetary policy tightening cycle. We find that while deposit betas have continued to rise, they did not accelerate following the bank runs in March 2023. In addition, while overall deposit funding has remained stable, we find that the banks most affected by the March 2023 events are offering higher deposit rates and are growing their deposit funding relative to the broader banking industry.

Keywords: deposit beta; deposits; banks; funding (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Date: 2024-03-27
New Economics Papers: this item is included in nep-ban, nep-mac and nep-mon
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